U.S. Preferred Stocks Look Attractive And PFFA Is A Top-Performing Preferred Stocks ETF (Archive)
Preferred stocks and PFFA offer compelling income, discounts, and alpha potential today.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- PFFA is a well-diversified and consistently top-performing preferred stock ETF, enabled by management's bold allocation strategy.
- The current rates backdrop is favorable for the preferred equity share class as the chances of a 'higher-for-longer' narrative for the Fed's March 2024 meeting has increased; from 45% to 90%.
- Preferred stocks are trading at an attractive discount to par value, far below historical norms, making mean-reversion buys attractive.
- PFFA's NAV premium has reduced and the technicals relative to the S&P500 also suggest signs of accumulation, suggesting alpha potential ahead.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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