Closed-End Fund Debacle

By on September 18, 2008

The performance of closed-end funds has been hideous lately. In 30 years of watching the markets I’ve never seen such price destruction in this area. It is currently common to see many funds trading at discounts of more than 20% to net asset value, which makes their yields particularly enticing. Unless we are plunging into the Great Depression 2, now appears to be an opportune time to shift low-yielding cash equivalents to these funds. For some ideas check out the excellent Site-By-Site! Closed-End Funds Center at Check out the CEF’s by Discount link for some ideas.

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