RE:RE:RE:RE:Looking at the DF chart is mostly a waste of timeflamingogold wrote: DF challenging LFE for regular distributions. It will likely depend on how quickly rates fall (or at all).
DF had a solid streak of 14 distributions in 2021-22. Then, rates started rising Spring '22 and shortly afterwards distributions for DF stopped and haven't resumed since. However, LFE is now paying and likely to pay again this month. Any rate declines, however, will help DF and not LFE. Question is... do we get the rate drop in June or later or ever this year?
mouserman wrote: flamingogold wrote: LFE can be included as well, just a hair above in NAV over DF. DFN can be included as well, only slightly higher than both of them.
mouserman wrote: These split fund commons react to the movement of the NAV , and really TA isnt a great way to trade these. With the markets going very red today, DF's UNIT NAV now will have fallen to a level close to the threshhold to pay.. doesnt take long when they only have a 12 cent cushion.
Wasnt picking specifically on DF, was just commenting on Pulcan's TA, which he seems to think has an effect on split fund commons. I buy and sell according to the discount ( buying ) or premium to NAV ( selling). I only look at the historical chart to see how much better Lifecos have performed than the banks, of late... going back 18 months or so. High interest rates have definitely made a difference.
And no guarantee of a cut coming very soon.
I really dont think there will BIG interest rate cuts. Likely .25 % each time, and maybe only 2 or 3 of those in 2024 at the most. WILL make little difference to the lifecos income from high interest preferreds and bonds..on the premiums they collect. MAYBE IN A YEAR OR 2 if the rates drop by a few %. I doubt the lifecos will ever see the near 0 % interest rates that they dealt with for a number of years.