PDI - PDI: This Recovery Is Set To Continue (Rating Upgrade)
2024-03-12 09:02:57 ET
Summary
- The PIMCO Dynamic Income Fund has seen a strong total return performance YTD.
- The fund's net asset value declines have started to reverse, and PDI could experience positive NAV growth in 2024.
- The fund's NAV premium is expanding, indicating growing investor confidence and expectations for future performance.
The PIMCO Dynamic Income Fund ( PDI ) has seen a near-10% total return so far this year as reality is sinking in slowly that the Federal Reserve, despite a recent setback on the inflation trajectory, is nearing the point of no return: the point at which it will end its tightening policy. This, in my opinion, will set the CEF up for further valuation growth in the remainder of the year. Longer-term interest rates recently fell below the inflation rate in the U.S., which is a strong signal for the Federal Reserve to lower the federal fund rate. I expect the Federal Reserve to accelerate its policy of rate cuts in the second half of the year, which could make the PDI potentially an out-performance candidate for dividend investors!...
PDI: This Recovery Is Set To Continue (Rating Upgrade)