I just couldn’t let March go by without making a purchase. With the market generally up for the month, financials were the laggards. So on March 24th I added to my existing PNC position at $84.08. By averaging down, I effectively reduced my cost basis by about $.50.
Although I consider PNC a core position I haven’t been aggressive in getting it to my 3% target weight, primarily due to the 2.4% yield. I’m still lacking in this regard but am considering this purchase a down payment.
- Benefits: Poised to benefit with a continuation of interest rate increases
- Negatives – economic slowdown will disproportionately impact
I believe any downsides are mitigated through their 20% ownership of Blackrock.