No. of Recommendations: 4
I was asked "the name of that service?"
It is Douglas Albo CEFs: Income + Opportunity
https://seekingalpha.com/author/douglas-albohttps://seekingalpha.com/checkout/mp_1237I followed his free posts for a long time, and finally bit the bullet and subscribed a few years ago, when Preferred stocks basically quit working.
I believe it is important to "diversify strategies within a portfolio, and not just securities." Growth & value strategies are well covered here. But income(-ish) strategies are not. I reject Dividend Strategies as just stupid, and I don't much like bonds.
So income(-ish) strategy using CEFs filled that segment in my portfolio.
One thing he keeps pounding the table for is that in CEFs you need to focus on NAV performance & yield, not price performance & yield. Most small investors focus on the latter, which is why you see such things as GGT paying 17% yield at a premium of +85% while bleeding NAV.
Or CLM, paying 19.5% while NAV has gone from 22 to 7 in the last 10 years.
$10,000 initial investment went to $3,846 while collecting $12,229 dividends.
Like Wile E. Coyote running off a cliff, works
great until he notices that there is nothing holding him up.
One of my notes:
"Doug Albo (3/26/20): ETJ is really not a bull market fund even though investors will bid it up like one. It's more for protecting your capital in a deep bear market since investors will panic and drop the market price to a -20% discount. That's where you want to buy because your financial interest in the fund in a worst case scenario is NOT the market price, its the NAV."
FWIW, ETJ is currently at -9.8% discount and 8.9% yield.
$10,000 initial investment went to $8,424 while collecting $8,286 dividends, the last 10 years.
Eh, sorry I rambled on so long, I easily get carried away.
