General American Investors: We Are Forced To Put A Sell Rating On One Of Our Favorite Preferred Stocks

2026-01-30 07:22:19 ET

Recently, we have been both investing in and writing articles about CEF preferred stocks. We are turning our attention to credit risk and are willing to bet that long-term yields may finally move lower amid global uncertainty. It is for the world to see whether the USA will still be a safe haven, and the null hypothesis is "yes" unless proven otherwise. Today, we will focus on a very simple yet important lesson about preferred stocks. There are two main points:

1. Past performance is useless when evaluating preferred stocks
2. Buying below par is always better when the current yield is the same.

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