I want to send you over to Eric Newman’s shredding of a popular closed-end fund, which purportedly offers a 20%-plus yield to investors so that you can learn about one of the worst conventions of the investment biz. Eric is the CIO and partner of TFS Capital.
As rates rise (if they rise?) a lot of this type of thing will come back to haunt the investor class and the brokers who’ve been pitching it to people. It’s going to be ugly. You can protect yourself by understanding how the sausage is made.
It’s so good I won’t even excerpt. Just go: