QQQ - Equity CEFs: Are Rights Offerings In Growth And Technology CEFs Signaling A Top?
- For 2020 and now back in 2021, growth and technology ETFs have been the go-to funds for enhanced performance.
- But for CEFs, there's often an added twist or two that can make the funds either outperform or underperform their ETF benchmarks, often based simply on emotions and whims.
- Then add the fact that many growth and technology CEFs have announced Rights Offerings recently and that has just contributed to the fund's wild swings.
- Is this signaling a market top? Maybe, but this probably has more to do with fund sponsors taking advantage of premium valuations to raise assets.
- But this is where opportunities to buy and even sell arise as often these emotional gyrations can result in extreme over and under valuations.
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Equity CEFs: Are Rights Offerings In Growth And Technology CEFs Signaling A Top?