BSTZ - Equity CEFs: The NAV Doesn't Lie And Why You Should Be Selling The Cornerstone Funds

• For those who think that CEF market prices can defy gravity like stocks such as GameStop in which value is in the eye of the beholder, I've got news for you.
• And for those Robinhood, Reddit or retail investors who may stumble upon this article as part of a research effort, understand that CEFs are a much different beast than stocks and even ETFs.
• That's because CEFs are the only security class in the markets in which investors are given an bonafide, unassailable liquidation value and yet are free to pay more or less than that.
• As we know, ETFs are designed to trade essentially at their NAV at all times while stocks may not have an NAV, but they have a subjective value that anyone could claim is justified.
• But there's no escaping a CEF's NAV and what the fund is worth. It's given to you every business-day by the fund sponsor at 6:00 PM EST if you know where to look.  And what percent of investors in these funds know where to look? Try close to zero.

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