RNP Forecast


Bullish Case: RNP's portfolio boasts high-quality preferred stocks and REITs undervalued under current interest rates. With anticipated rate cuts, these assets could appreciate significantly, leading to strong total returns [seekingalpha.com].


Bearish Case: Continued high interest rates will suppress RNP's yield and asset value, potentially prompting dividend cuts. The fund's leverage could exacerbate losses in a prolonged high-rate environment making it less attractive [seekingalpha.com].


Potential Outcomes:

1. Interest rate cuts by late 2024 leading to a 20% price appreciation (35% probability) [seekingalpha.com].

2. Prolonged high rates decrease NAV by 10% (25% probability).

3. Stable interest rates with moderate 5% growth (40% probability).


Trading Oracle: Short-term strategy leverages Helium Short Volatility via credit spreads on RNP, betting on stability until year-end. Target selling $19 puts and buying $15 puts expiring in 6 months. This trades on mean-reversion tendencies and stable forecasts with high reward:risk based on current mean-reverting trends .


June 28, 2024


Cohen & Steers REIT & Preferred Income Fund Forecast

RNP      Cohen & Steers REIT & Preferred Income Fund











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BYD Forecast + Options Trading Strategies   BYD  Boyd Gaming (0.0)


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LVS Forecast + Options Trading Strategies   LVS  Las Vegas Sands (-0.0)


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Anticorrelated Assets

Assets that tend to move strongly against RNP



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DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.91)


DXD Forecast + Options Trading Strategies   DXD  ProShares UltraShort Dow30 (-0.91)





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