RE:RE:FTN the only split fund common in my list thats redThe Sept 18 announcement of a distribution cut to the preferreds of appx 10% has rattled some folks. They're expecting a similar announcement for the commons to happen soon.
Many folks are worried this will create a malaise throughout the whole sector and the other similar investment vehicles will be following suit.
I suspect a lot of portfolio managers are looking at other investment opportunities right now which are safer or will pay better or same monthly distributions.
Once those folks get moving, it turns into a "herd" mentality issue, rather than good due diligence.
Either that or they know or anticipating something we don't know.
I keep some of my core money in FTN for monthly income. Maybe it's time to hide in cash for a bit? Maybe not?
This is always a tumultuous time of year.
Investment brokerages encourage their staff to push for "balancing" portfolios and depending on how hot the coffee is that morning, select a basket to dump and a basket to purchase.
It's not a bad policy but I sometimes feel it's abused to generate income for the brokerages. Just IMHO.
GLTA the good folks here