PCI - Closed-End Funds Have Rebounded In 2019
The closed-end fund market was looking extremely dire during the holidays with NAVs peaking just before the start of the fourth quarter. Valuations also peaked then with many funds trading at a premium to NAV. Then nearly all funds saw NAVs roll over as virtually every risky asset declined in the fourth quarter.
That NAV decline was combined with significant tax loss selling throughout the final two months of the year creating a severely oversold condition. Still, despite very wide discounts, if the NAV is in decline mode, it may be too early to buy