High-yield/macroeconomics (fka YIELD)

[abreis]

Hi Jimmy,

As rfj mentioned you might want to check out Pasternack's Hi Yield Enewsletter as she gives monthly distribution dates and has a handle on a lot of good hi yield stocks and funds.

Unfortunately, I don't have to time to actively manage the distribution strategy you use.

What I usually do is to buy the stock or fund when they announce a significant distribution and hold until I get the funds in my account. I then will buy the stock or fund at the reduced price using the distribution.

What usually happens next is after a few days or weeks (if the stock or fund is solid) it will return to the original pre-distribution price only this time I have additional shares. It's a way of amortizing my investment.

I used this strategy fairly successfully with EMF, LDF and GMR. I intend to use it when KF announces the large distribution as I think it will recover within a short period of time.

To protect myself I will put a stop loss equal to the distribution therefore, saving me from losing any significant amount. Note: If the market tanks then all bets are off. FWIW