I mentioned in this post that I was long some closed end bond funds that had not yet made any price gains. Since then some of those heavily discounted funds advanced to big premiums to net asset value. I sold those and I am hoping for that kind of discount to occur again. Nice to have those work in January because GE and BrK.B sure did not.Unlike most stock-market investors, closed-end-fund investors enjoyed a strong, stable January. But they might not want to get too comfortable.
With last fall's wild stock and bond markets giving way to relatively steadier days this past month, huge discounts that dogged these funds for months have largely disappeared, helping investors offset the month's 8.8% drop in the Dow Jones Industrial Average. Many bond funds had a double boost: rising bond prices and the shrinking discount.
Tuesday, February 3, 2009
WSJ:January Proved Kind to Closed-End Funds
From the WSJ:
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment