I've been on vacation and have intentionally not posted my dribble... but I have been increasingly wanting to become educated and others, about the minutia of ETF investing and the NAV premium and payout of capital gains etc. vs. the macro view, which is my specialty.

When I posted the public/private post you referred to investorina I was presuming the FED and the Treasury were going to have a bonafide means in which to attract private capital in order to solve some of the toxic asset problems of the banks. This effort was a joke and PIMCO backed out totally and others did as well. The first go around was very poorly subscribed, really not getting off the ground. So the speculation I mentioned was just that.

However, for me it's all about investors moving out the risk spectrum as investors become more comfortable that the credit risks to the global economy are lessening and investors seek higher yields and stock market capital appreciation like total returns. The recent trim tabs data showed I think it was $24 billion into bond funds and only $9 billion into equity funds. This huge supply of new money is a phenomenal macro development.

Conclusion: PTY and PCN are stock market substitutes and when you consider Bill's "new normal" analysis; whereas these funds not only could reach $15 but also maybe $18. This probably goes totally counter to the premium to NAV analysis and the potential increase in dividend or capital gain payout. Please set me straight Dave and keep it elementary. I have nearly 30% of my portfolio in PTY and PCN and I'm ready to pull the trigger and increase it to between 40%-50% based upon Bill's "new" normal analysis.