My Plan Was to Never Sell, But…

I decided to reduce some risks in the portfolio this week. Some of the Closed-End Funds that I invested in relied on junk bonds and unrated debt. I decided to reduce my exposure to the riskier end of the bond market. Goodbye to DSL, OPP, PHK, PDI.

With interest rates higher and rising, I don’t need to. Safer instruments are paying well.

I also sold some financials like Manulife and Great-West Life. They pay 5%, but I can get that in T-bills.

I also think we might see some of the weaker areas of the economy fail. We saw a preview with banks. But banks are safe. What about those companies that are paying 14% interest for debt? Are they going to keep that up?

And finally, I lost faith in India. Decided to close out IFN.

So, sadly, I sold some stuff. It’s tax season anyways. I’m going to need some money soon to pay the government.