Among my other research activities every day, I follow the closed-end fund (CEF) marketplace pretty carefully.
Why do I do that? Because nobody else is doing it, and there are incredible opportunities that pop up all the time that allow me to give you opportunities that would otherwise go unnoticed.
If your primary investment need is income, closed-end funds are where your focus needs to be.
Otherwise, you’re leaving a ton of money on the table.
We’ve had several interesting discussions about yield in recent weeks.
When I was a broker, some of our most significant competition for investment dollars was from the banks.
A lot of retirees and near-retirees did not want to take a lot of risks when they could earn up to 7% from a fully insured bank Certificate of Deposit.
They knew they would get all the money back, and they never spent a minute worrying about how the S&P 500 or Dow Jones indexes were doing that day.
These risk-averse folks would rarely even consider a REIT or a muni bond fund.
They liked their bank, they trusted their bank, and they knew Uncle Sam had their back if their bankers decided to be stupid.
The bad news is those options no longer exist.
These days you need to think differently and explore the corners of the market that no one else is even thinking about if we’re going to find good yield without taking on massive risk.
Let’s get started…