One type of investment I’ve rarely purchased is a Closed End Fund (CEF). A CEF is a company in the business of making money by investing in stocks or bonds (instead of making burgers like Burger King). A mutual fund or ETF has an unlimited number of shares which you essentially buy from the offering company. CEF shares are traded on the stock market and are purchased from another investor. There are about 600 CEFs and CEFConnect.com provides a way to analyze them. For example, a screen for tax free funds yields a list 200 CEFs which yield 2.22% to 7.79%. The 7.79% CEF, Pioneer Municipal High Income (MHI), produces the high yield by being leveraged by 25.48% – it has borrowed 25% of its assets. It sells at 10% above the value of its assets and has lost 7.4% over the last year. The 15Apr MoneyLife show, www.moneylifeshow.com, featured John Cole Scott, chief investment officer, Closed-End Fund Advisors. Inc. Currently he likes global and Master Limited Partnership (MPL) CEFs. He likes MIE, ETV, and as part of the show’s “hold it or fold it” segment he answered viewers questions and likes NBB, SOR, TYN and dislikes NCV and GAB.
Again the federal reserve board (FRB) in the form of Janet Yellen, the chairman, basically said the FRB would print money for at least a year (if they do not run out of ink) and keep interest rates low for a year. The market likes printing money.
IBD TBP’s Current Outlook is “Market in Correction” – not time to invest.
My current investments:
Nordic has a price of 45.57, a sell price 44.11, a relative rank of 07, and is a hold.
SAirTransportation has a price of 61.31, a sell price 58.98, a relative rank of 06, and is a hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes
IRA #1 – 00% invested
IRA #2 – 40% invested