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High yields funds continue to reflect positive price action as they are at or above highs reached earlier this year. For owners, they continue to receive capital appreciation and an average yield around 6.5%.
Game Plan….Remain an renter of these high yield funds. Will own them until they break support and key moving averages. Seldom has the broad stock market fallen hard until these funds reflect across he board weakness.
MUB has done very well of late for sure! Great idea!!!
cjk….I am showing the basic 50 and 100 ema lines. I use a couple of different twists for my decisions, a set of three MA lines, slow/medium/fast, high yields have been above the slow and medium since May of 2009….talk about capital appreciation….boy have they dished it out! For illustration purposes I wanted to show that the high yields remain above very poplular and well established EMA lines. I agree with you per wanting to hold onto Capital Appreciation.
As I have shared on the blog, seeking some conservative appreciation and above average yields, PFF continues to do well for investors.
Chris
PS: have you checked out the relative performance of municipal bond etfs (e.g., MUB) and high-yield municipal bond mutual funds (e.g., PRFHX) over the last month or so when they bounced off support?
Hi Chris – wondering what moving averages are shown on the charts. Thinking about selling half if they break the 20-day SMA and the rest at the 50-day EMA, or sooner, particularly if the stock market starts to take a dump. Would like to hold onto the capital appreciation. cjk