Revealed: My Personal 3-Point “When to Sell” Checklist for CEFs

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Income investors are typically a conservative and prudent bunch. Focused on a sustainable income stream, they often look for a sign to avoid a big price drop.

So when it comes to one of the highest-yielding investments of all—closed-end funds (CEFs)—how can you know when the time has come to sell?

I’ll tackle that question with a 1-2-3 approach to CEFs that will help you avoid the kinds of value traps that promise big dividends but really deliver big losses.

Sell Signs Not Always Easy to Spot

First off, it’s easier to know when to buy than when to sell.… Read more

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With market volatility kicking into high gear, now is the perfect time to talk about one of the biggest questions CEF investors face: how do you know when it’s time to sell a closed-end fund (CEF)?

Unfortunately, there’s no simple answer to that question—and often investors who use conventional sell signals, like a falling market price, will end up selling at the worst time.

That leads me to my cardinal rule with CEFs: it’s easier to know when to buy than when to sell. If the fund is well managed, has a strong track record, is deeply discounted and has a relatively safe dividend, it’s generally a screaming buy.… Read more

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We’re always looking for reader feedback at my CEF Insider service, so we recently sent out a survey to our members (if you are one, you likely got it) asking for the topics they’d most like to see us cover.

One of the most common answers: how to know when it’s time to sell a closed-end fund (CEF).

So now I want to tackle that question (with more articles to come in the next few weeks answering other questions from our survey).

Sell Signs Not Always Easy to Spot

First off, it’s easier to know when to buy than when to sell.… Read more

Read More

About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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