Summary of "Patreon Exclusive MSTY and WNTR (part 2) || Psychic Liz Cross"

Context and disclosures

The source is a video labeled for entertainment only and owned by Psychic Liz Cross LLC.
Explicit disclaimer used in the video: “for entertainment purposes only.”
Presenters repeatedly state this is not investment advice; discussion is informal and includes psychic / “time probe” style forecasting.

“For entertainment purposes only.”

Misti / Misty (referred to as MSTY / MISTY / “Misti”) — a YieldMax product (high-yield, options-based fund).
Winter (referred to as WTR / WNTR) — another YieldMax product.
MSTR (MicroStrategy) — discussed as a time-dependent, high-volatility investment example.
Options / call-writing strategy — funds generate income by selling calls.
Lower-risk allocation alternatives referenced: money markets, bonds, treasuries.

YieldMax declares yield using current NAV: take the current NAV, annualize the weekly distribution amount, and report that as the fund’s annual yield.
Published yields are based on the share price / NAV on the reporting day; individual investors’ realized yields will differ depending on purchase price and any sales.
Because YieldMax uses the same NAV-based method across products, published yields are comparable across their funds.

Time window referenced: retrospective/projections around 2026–2029, with specific probes aimed at January 22, 2029 and looking back to 2026–2027.
Average annual yields discussed (for 2026 & 2027):
- Misti (MSTY/MISTY): roughly 75–80% per year (often cited ≈80%).
- Winter (WNTR/WTR): roughly 110% (ranges 110–120%; commonly ≈110%).
Return of Capital (ROC) vs operating profit breakdown (per CEO / probes):
- Winter: ~95% from profit and ~5% from ROC (CEO/probe: profit 90–95%, ROC ~5%).
- Misti: ~70–80% from profit and ~20–30% ROC (CEO/probe: ROC about 20%).
Corporate action: Misti reportedly executed a reverse stock split on or around November 1, 2026 — ratio stated as 2:1.

Paying dividends out of ROC can cause NAV/share erosion over time; the higher the ROC component, the greater the risk of NAV decline.
Participants should read funds’ public filings and prospectuses to verify the ROC vs profit composition of distributions.
One speaker preference: YieldMax should lower Misti’s declared yield (example suggested 40–50%) to preserve NAV — lower yields reduce payout pressure and NAV erosion risk.
Suitability note: high-yield, income-oriented funds require time in the market and capacity to withstand drawdowns. Investors seeking capital preservation (often older investors) may prefer money markets, bonds, or treasuries.
Yields discussed are historical/annualized and depend on NAV at the time reported — individual outcomes will vary by entry price and holding period.
The presenters addressed YouTube “scare mongers” claims: while some ROC is used, the speakers stated the funds have been paying most dividends from profits (not entirely ROC).

Check the published yield methodology — are yields annualized from weekly distributions using current NAV?
Compare yields across products using the standard NAV-based yields (apples-to-apples).
Review historical annual yields for the relevant years (e.g., 2026–2027).
Inspect fund financials and the prospectus to quantify the share of dividends paid from operating profit vs ROC.
Monitor NAV trajectory to detect erosion from persistent ROC-funded distributions.
Watch for management commentary and corporate actions (e.g., yield cuts, reverse splits) and assess potential impact.
Align fund choice with investor horizon and risk tolerance (income needs vs capital preservation).

Winter was characterized as generating most dividends from option profits (low ROC), which is favorable for NAV preservation.
Misti has used more ROC historically (around ~20%), posing greater NAV erosion risk unless yield is trimmed or profitability improves.
YieldMax management acknowledged consideration of lowering yields for sustainability but had not implemented large cuts as of the probes.

Psychic Liz Cross (video host / owner — Psychic Liz Cross LLC)
“Mr. Shakespeare” (participant / asker)
“Mike,” “Spencer,” “Bruce” (participants / psychic probes referenced)
Jay Pestrochelli (identified as CEO of YieldMax products) — primary company source quoted in the discussion
MicroStrategy (MSTR) referenced as an example asset

Misti average annual yield (2026–2027): ~75–80% (commonly ~80%).
Winter average annual yield (2026–2027): ~110% (ranges 110–120%).
ROC contribution:
- Misti: ~20% ROC / 70–80% profit (per CEO/probes).
- Winter: ~5% ROC / 90–95% profit (per CEO/probes).
Reverse split for Misti: 2:1 (on/around November 1, 2026).