In Plus episode 386, we explore what the phrase "outperform the market" means. We review several financial condition indices produced by Federal Reserve branches to understand what they mean and what they are currently showing. Finally, we review David's recent trade to reduce gold and provide an update on his other recent trades, including why DSU fell more than a Fidelity Floating rate mutual fund. … [Read more...]
386: When Should You Pay a Premium?
What are examples of when it makes sense to pay more than the usual price or fair value for an item or asset? Topics covered include: Why we are willing to pay a premium for convenience, scarcity, status, and to avoid wasteWhat is the difference between net asset value and book valueWhy business development companies can sell at a premiumWhy farmland REITs sell at a premiumWhy closed-end funds sell at a premiumHow to decide whether to pay a premium or not Show Notes The Fall … [Read more...]
373 Plus: February 2022 Investment Conditions, Morningstar Ratings, and a Closed-End Fund Case Study
In Plus Episode 373, we review investment conditions as of early February 2022. We consider the three ways Morningstar ranks mutual funds and ETFs to see if higher-ranked funds perform better. Finally, we analyze The India Fund Inc. (IFN), a closed-end fund that invests in Indian stocks. … [Read more...]
361 Plus: Closed-End Fund Tender Offers and Asset Class Returns During High Inflation Environments
In Plus Episode 361, we review the proxy battle that has led to a tender offer by Templeton Global Income Fund (GIM) to purchase up to 70% of its outstanding shares. We consider whether now is the time to sell the fund. We also review two studies on how different asset classes and investment strategies performed during periods of high inflation. … [Read more...]
342 Plus: Small Cap Value, Lumber Prices, and GBTC Discount
In Plus Episode 342, we review the performance of value and growth equity indices, consider whether the value style will continue to outperform and analyze the Avantis U.S. Small Cap Value ETF (AVUV) and the Avantis International Small Cap Value ETF (AVDV). We review what is driving the five-fold spike in U.S. lumber prices and the outlook for prices going forward. Finally, we consider how the Greyscale Bitcoin Trust (GBTC) acts like a typical closed-end fund in which the discount to net … [Read more...]
331 Plus: Member Profile, Tail Risk Protection, Rental Real Estate as Bond Substitute, and YYY ETF
In Plus Episode 331, we profile a member in Bosnia who is deciding on a new asset allocation after selling a business. We consider whether investors in their thirties should seek tail risk protection against declining stock markets. We evaluate how rental real estate can be used as a bond substitute. Finally, we analyze the Amplify High Income Fund ETF (YYY) that invests in closed-end funds. We also discuss CEFL and CEFD that follow a similar strategy. … [Read more...]
How to Invest in Closed-End Funds
What are the characteristics of closed-end funds (CEFs) and how can you identify attractive candidates to earn a profit with closed-end fund investing ARTICLE TABLE OF CONTENTS (Skip to Section) What Are Closed-End FundsDifferences Between Open-end Mutual Funds and Closed-end FundsOpen-End Mutual Funds vs. Closed-End Funds ChartWhat is Net Asset Value?Closed-End Fund Discounts and PremiumsLeverage Closed-End Fund ExpensesHow To Analyze A Closed-End FundThe Ideal CEF Purchase … [Read more...]
277 Plus: Investing Cash, Closed-end Funds, Volatility Risk Premium and Rights Offerings
In Plus episode 277 for the week of November 16, 2019 we look at different cash investing options. We review how to evaluate closed-end funds with a focus on recent closed-end funds David has invested in, including one that harvests the volatility risk premium. Finally, we look at how rights offerings work. … [Read more...]
252 Plus: May 2019 Mid Month Update and a Closed End Fund Income Factory
In Plus episode 252 for the week of May 18, 2019, we look recent market and economic trends in light of the heightened trade war. We review how closed-end funds work in the context of a member's question regarding investing in the Templeton Global Income Fund (GIM). Finally, we look at an investor who invests exclusively in higher yielding closed-end funds and leveraged ETFs; an approach he calls the income factory. … [Read more...]
243 Plus: March 2019 Portfolio Review, Preferred Stock and 10th Anniversary of the Secular Bull
In Plus episode 243 for the week of March 8, 2019 we review a recent change in David's portfolio as it relates to preferred stock and take a look at the characteristics of preferred stock. We also explore secular bull and bear markets in recognition of the 10th year anniversary of the current secular bull. … [Read more...]
