Why Bother With Stocks?

[cute fuzzy bunny]

Too much wine consumed to deal with semantics.

That explains it.

Your points are entirely valid and I agree with them. I also agree with your contention against what you thought I said, which I didnt say. Which is apparently too hard for you to say! Say what?

 

[brewer12345]

That explains it.

Your points are entirely valid and I agree with them.  I also agree with your contention against what you thought I said, which I didnt say.  Which is apparently too hard for you to say!  Say what?

Careful. Its easy to be so sharp that you cut yourself.

 

[cute fuzzy bunny]

I'm feeling generous, and the guinness is good, so I'm going to go back and change my post so that your contentions of it are actually accurate

 

[mikew]

The other reason for the high yields of CEFs is the discount. GIM's discount has narrowed from 8% to 1.27%. The yield has come down from about 7% to 5.59%.

Wouldn’t the positive side of the global savings glut be that investing in leveraged funds be less risky because rates would stay low?

If rates do go against leverage, would it be slow enough to get out of the way?
What I have read is that the fed is almost done raising rates. Japan and Europe are raising rates but aren’t they going to do it in baby steps.

Actually I am interested in CEFs but haven't done much beyond GIM and CEE (Eastern Europe Fund). Still haven't made up my mind about them.

Mike

 

[brewer12345]

Actually I am interested in CEFs but haven't done much beyond GIM and CEE (Eastern Europe Fund). Still haven't made up my mind about them.

Mike

I don't think you need to "decide" about CEFs as a whole. Just each one individually. Sometimes they are a great deal (a portfolio you like at a discount to NAV), sometimes they are a rip-off.

GIM is less of a great deal than it was a little while ago. If I were looking to put new money into it, I might be inclined to wait for a fatter (5%) discount.