Horse Racing Forum - PaceAdvantage.Com - Horse Racing Message Board

Go Back   Horse Racing Forum - PaceAdvantage.Com - Horse Racing Message Board


View Single Post
Old 08-07-2018, 12:36 PM   #563
FakeNameChanged
Registered User
 
Join Date: Jan 2010
Posts: 2,176
Quote:
Originally Posted by _______ View Post
Fair enough. I’m not trying to talk you or anyone else into an investment they aren’t comfortable with. I will note that ETF’s and mutual funds also require a buyer and seller, not just CEF’s.

The scarcity of buyers drives the managers of ETF’s and mutual funds into liquidating assets at exactly the time they may want to be buying. The manager of a CEF shrugs his shoulder’s and looks for bargains since he doesn’t have to meet a demand for redemptions. The inability to sell a CEF at a reasonable price near NAV is actually a pretty good signal that you probably shouldn’t be selling it anyway.

@plainolbill: I understand CEF’s are excellent trading vehicles because of the obvious inefficiencies that occur when retail investors rush in and out. But I’m a long term holder of the bond funds I purchased. If you get a good entry point and are in it for the income generated, it doesn’t matter if you get a z score approaching +3 as recently happened wth one of my funds. I shrug my shoulders knowing there isn’t a great likelyhood the discount will narrow further but I’m not in it for capital gains (though they are really nice as a bonus).

Dan Ivascyn, Jeff Gundlach, and Larry Fink manage my bond portfolio. They charge a bit for it but it’s absolutely been worth it.
Not so with Mutual Funds, they don't trade like stocks or ETF's. You are transacting directly with the fund. Transactions with funds happen after the market closes(buying or selling) when a new net asset value is set(price). When there's lots of redemptions, your selling prices usually plunges, similar in that respect to prices on stocks and ETF's. Closed end funds trade like stocks.
__________________
One of the downsides of the Internet is that it allows like-minded people to form communities, and sometimes those communities are stupid.
FakeNameChanged is offline   Reply With Quote Reply
 
» Advertisement
Powered by vBadvanced CMPS v3.2.3

All times are GMT -4. The time now is 08:53 AM.


Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Copyright 1999 - 2023 -- PaceAdvantage.Com -- All Rights Reserved
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program
designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.