As previously noted, Google deleted my weekly post when I attempted to open it to make a minor revision. Stocks, Bonds & Politics: Weekly Post Was Deleted by Google: I Will Not Write It Again/ Sold: 100 TDIV at $25.63 and 100 HBAN at $9.53/Bought 50 ARCC at $15.41 and 300 ACG at $7.53/Bought 50 BRG at $11.98-Roth IRA
One of the trades discussed in that deleted post was a 50 share purchase of ARCC at $15.41. I elected to rewrite that discussion and publish it at SeekingAlpha. Bought 50 ARCC At $15.41-A Typical Small Lot Purchase Of An Externally Managed BDC Stock - southgent1951 | Seeking Alpha
The primary purpose is to highlight the balancing of potential risks and rewards inherent in externally managed BDCs. To accomplish that task, information needs to be acquired and evaluated on the potential risks. Most individual investors probably have never read the voluminous risk disclosures contained in a BDC's annual report.
Instead of assessing the risks, a number of individual investors focus too much on the current dividend yield without assessing or even acknowledging the risks which includes net asset value destruction over time and dividend slashes during recessions.
It is difficult to harvest gains on the shares. Easier said than done is my motto in this sector. My trading strategy designed for BDCs is based on a recognition of their many disadvantages and risks and the likely capital losses for long term owners.