High-Yield CEFs With Big Price Gains In The Last Month

There are several strategies when investing in closed-end funds. Many investors look at these investments as long-term holdings where they simply reinvest their dividends to compound their growth rate. Others may purchase a CEF for its high distributions to use as a supplement to their monthly income. One of the rules CEF investors follow is to buy at a discount to NAV. The theory is you are buying a $1.00 of assets for a price below $1.00 depending on the amount of discount to NAV. This all sounds good when the CEF market price increases to the NAV. But what if it doesn't increase as some CEFs may trade at a discount to NAV for an extended period of time? Here is one way of looking at this from a different perspective. Buying CEFs at a discount is very similar to value investing as stated above. The best time to... Read more