AIO - Equity CEFs:  How Good Is Mr. Market At Predicting A CEF's Future?  Not Very

• It's one of the most time-tested theories in the markets.  That the market is efficient and will price in all the knowable facts of any security at any given moment.
• That may work for stocks and their price points, but I have been throwing cold water on that theory for years when it comes to CEF market prices.
• In fact, I would say that investors in CEFs are probably some of the worst predictors of where a fund is headed at market price.
• The biggest reason is the fact that most investors in CEFs use superficial statistics to base their investment decisions and completely ignore what's important, i.e. valuations as it relates to NAV performance.
• I will say this for the umpteenth time.  Follow a fund's NAV taking into account all distributions, and you will find where a fund's market price is ultimately going too.

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