Comment by JoeBravo1on Sep 09, 2024 8:01am
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Post# 36214384
RE:About HPYT net asset value
RE:About HPYT net asset valueThanks for sharing that communication with Harvest.
It pretty much sums up how the fund works. It's paid out $1.65 since its IPO at $12 which means that since then those who invested at the IPO price are up $1 per shares as of the last close of $11.35.
But this is a monthly income vehicle, so it's not just about appreciation. Longer term, I believe it will move higher as rates move lower.
This was the case when rates were "expected" to move lower last December, and early this year which was just not the case. Too many analyst and journalist dramatics playing on emotions and expectations.
Powell had always siad the FED wanted to "observe" data for at least 12 months prior to making a rate cut decision. We are now 14 months into observing data and monetary easing is about to begin in the US and should be aggressive as it has been here in Canada.
As rates decrease, TLT and HPYT's other holdings will appreciated along with HPYT. Watch for HPYT to be at $12 again by this year end. JMO