Investonerd (< 20)

Slow and painful death of income CEF-s

August 27, 2008 – Comments (0) | RELATED TICKERS: AGD , RMH , ACG

Just a quick roundup of pain afflicted on income investors, lookup charts for:

AGD, RMH, RHY, RMA, KSF

Not to mention the REIT-s IGR, NLY and TMA.

Specifically for CEF-s the charts do not paint tradeable technicals with a good chance of recovery. CEF-s that lost NAV and are focused on short term trading (like AGD) are simply not good candidates for bounce in NAV - thus while trading above NAV, their market value  and charts are still heading south.

All the while - diversification in income strategy proved like the prudent choice over the last year:

ACG, AWF, PBT, FRO, FXA, FXB

Income investing was supposed to be a "safe" form of investment while not playing with odd options techniques. The housing crisis proved that assumption very wrong.