brpinion

What Will Happen to Closed End Funds?

user 276126 is right. CEF's are the only place a small investor can make buys in illiquid securities at a huge discount without driving up the price. I have now sold all my stock holdings and bought NONleveraged CEF's trading at unbelievable discounts. You can buy term CEF's like BEP and RCC at over 15% discounts and they will mature at asset value in 15 months! Including the dividends (and covered calls the funds sell) this will give you well over a 25% return (even with a cut in the dividend) assuming a flat market. The market would have to fall more than 25% before you lose money if you hold till maturity.

Also, why buy oil when you can buy IRR at a 25% discount. Just don't buy on margin and stay away from the leveraged funds. Look at EXG, ETW, EOD, JSN, JPZ for examples of tremendous opportunity.