I was just inspired by my buddy Gunther over at MagneCarte. He wrote a good entry today that everyone should read if they get a chance. It has indeed been a strange market the last few weeks. The Dow is up near 52 week highs, yet the only thing that has rallied much is the financials. Oil is now under $60 on its way back to $50 and closed-end funds are getting hammered as the market goes up. For leveraged funds, this would make sense, but for equity option funds it sure as hell doesn't.
Even though I work in the financial services industry, I am not in the practice of making specific recommendations on this blog. This one just seems too good to pass up.... NFJ at 21.50 is an absolute steal here. Once it bounces back to 23 people will want to buy it, but I am smarter than they are. I'll buy it here when nobody likes it and hold it and it's 9.7% dividend. It's not like this is a junk bond from GM or a mortgage REIT thats going to cut it's dividend soon. Buy it in an IRA, reinvest the dividends and just leave it alone...even if the price goes nowhere you are going to get almost 10% a year to wait. Even big brother initiated coverage recently and is on the bandwagon. Back up the truck!
1 comment:
Now if only the all knowing god "Cramer" will recommend it on Mad Money it will be sure to go up...Jimbo if you are out there, throw some love to the closed ends baby!!
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