Stocks are going gangbusters, but some closed-end funds—including three I’m going to tell you about below—have gotten way ahead of the market.
That means it’s time to sell. Yesterday.
But don’t let that turn you off the whole CEF space. Truth is, there’s still a treasure trove of hidden gems here, including some that crush the S&P 500 while paying incredible 7%+ dividends. It’s just that investors sometimes go overboard and bid certain CEFs above their actual value.
How is this possible?
Because unlike ETFs and mutual funds, which always trade at or near their net asset value (NAV, or what a fund’s underlying assets are worth), CEFs often trade at big premiums or discounts to NAV.…