Z - misery loves company. I'm just barely in the black, and only after Friday at considerable risk. My funds are down down, of course, most of my stocks are down.
I'm back on the closed end income fund kick. I'm starting to make some rules.
Cool site:
ETF/Closed End Trading Info Center
I own two now (EHI and LBF), may buy more:
JPS
GIF
KHI
MTS
BDF
Proposed rules:
1) Must have a discount (NAV to Share price) of greater than 5%, prefer over 10% (currently rare).
2) Must be known and have a decent (?) trading volume.
3) Must have high current relative to market conditions, currently should be be over 6%, prefer 7-8%
4) Sell quick if we go into hyperinflation interest rate jumps (take the short term loss rather than hold for years) UNLESS there is some sign of temporary conditions.
5) Funnel income back to cash position (Money Market) - but consider share buying with income as a good option.
6) Watch the ex-dividend and payment dates while buying and selling.
