GOF - Downgrading Guggenheim Strategic Opportunities Fund From A Buy To A Sell At $14.70
2024-03-05 10:20:06 ET
Summary
- The Guggenheim Strategic Opportunities Fund has been performing well at market price so far this year, up 17%, but its NAV performance has been extremely underwhelming comparatively.
- As a result, GOF is now at the top of my list of CEFs that have seen their market price far outperform their NAV, which is a red flag near term.
- With GOF back to a 20%-plus premium and an NAV only up 1.5% year-to-date, GOF is extremely overpriced and will have a hard time covering its 18.0% NAV yield.
- I recommended buying GOF at just about the low market price back in mid-October of last year, and based on GOF's volatility, I believe now is the time to sell.
We're at a point in the markets where buying whatever seems to work at whatever price seems to be the most popular strategy. And that will work until it doesn't, and I think we're getting close to that point....
Downgrading Guggenheim Strategic Opportunities Fund From A Buy To A Sell At $14.70