mavericks

CEF Volume Trends May Portend Their Appreciation

Many equity, non-leveraged, high yield CEF's I see are at hefty premiums already, not discounts. Smarter to buy a correlating ETF and use a similar strategy such as covered-calls yourself. Eliminate 100 bps in fees, achieve a higher yield and have better control. Small investor's are at the mercy of the institutional fund holders and market makers when they decide to take these funds back to a discount.


On Jun 27 01:26 PM esanto2 wrote:

> As baby boomers retire the demographics favor CEF's. The NAV's are
> generally still at hefty discounts to their share prices and as more
> investors seek income and underlying asset values continue to increase
> as the market recovers, CEF's will trade at premiums....Not discounts.

CEF Volume Trends May Portend Their Appreciation

Author is just talking his book. CEF's are in bubble mode currently. All time high premiums on many I follow as small investors chase yield in tough times. Contrarian indicator?