Closed-end fund (CEF) investors are going crazy again. This time, they’re grossly overpaying.
Today we’ll discuss five incredibly popular funds that are not likely to become more celebrated, and should be sold immediately.
Yes, first-level income hounds can be as greedy as they are fearful. In January 2016, they wanted nothing to do with CEFs. Exactly when many funds were about to embark on an 18-month tear!
Yet today, they’re willing to pay $1.49 for just $1 in assets. This is a recipe to lose money. Or at best, see your portfolio trade sideways.
This Discount/Premium as Margin of Safety (or Lack Thereof)
CEFs, unlike their mutual fund cousins, have fixed share counts.…