Investors often ask me when it’s time to sell a closed-end fund (CEF)—or what to look for in a CEF they should avoid buying in the first place.
With 2023 now dawning, bringing a raft of challenges—and opportunities—for those of us who love high-yield CEFs, now is a good time to tackle this question. And it so happens that I’ve run across a good CEF to use as an example: the Guggenheim Strategic Opportunities Fund (GOF).
The big eye-catcher with this fund is its blockbuster 14.4% yield, which we’ll come back to in a second. First, let’s discuss the most important metric for telling whether your CEF is overvalued—and thus ripe for a drop in price.… Read more