Time & Place: Closed End Funds 4.5% + Tax-Free Yields

Time & Place: Closed End Funds 4.5% + Tax-Free Yields

By Julien B. Booth

October 13, 2016

I hope this note finds you well. Our office suffered a horrific tragedy last Thursday (colleague lost a young daughter); we are embracing them and will help rebuild this family.

Thank you to those who have reached out.

There is a time and place for everything. The ridiculous, on again, off again Federal Reserve is all that drives the current rate markets. Damn the economic data; as it continues to be disappointing. Econ. cycles have not been eliminated.

The wonderful outcome of more Federal Reserve chatter: Closed-end funds (SECONDARY market only) are once again a wonderful bargain; Tax-free yields exceed 4.5% and taxable yields are in excess of 7.0%+. With rates likely range bound…there is value here.

We are actively adding to our closed-end fund positions.

As usual, thank you for investing with Forest Capital! For additional information on portfolio positioning, please contact Forest Capital directly at jbooth@forestcapital.net.