PMF - PMF: Nice Start To 2021 But My Outlook Now Is Limited
- PMF, along with its two sister funds, have had a strong 2021 so far.
- With rising prices and strong income metrics, the possibility for further gains is present.
- However, I am taking a cautious approach. PMF's premium is very high now, showing the market price is rising faster than its underlying value.
- The fund's duration is quite high, which means there will likely be pain if yields and/or interest rates rise in the coming months.
- Potential tax legislation could be a tailwind, but the outlook is uncertain.
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PMF: Nice Start To 2021, But My Outlook Now Is Limited