CSQ: Continuing To Outperform And Good Wealth Protection Against Dollar Devaluation

2025-06-09 06:25:20 ET

The Calamos Strategic Total Return Fund ( CSQ ) is a closed-end fund that provides a relatively attractive way for investors to obtain a more attractive level of income than what is provided by most domestic indices without the need to sacrifice their equity exposure. This is very important today because, as I pointed out in a recent article , there are some very real reasons to believe that bonds will not work particularly well at protecting the purchasing power of an investor’s wealth over the coming years. While it is true that bonds guarantee the return of the original amount that was lent to a government or company at the inception of the bond, the repayment is only done with nominal fiat currency that could very well be worth far less than what was originally borrowed. As such, the investor in a bond or a bond fund could end up losing purchasing power over the term of their investment. This actually was the case over the past ten years, which we can see by looking at the total returns provided by the Vanguard Total Bond Market Index Fund ( VBMFX ) and the iShares Core U.S. Aggregate Bond ETF ( AGG ) and then adjusting for inflation. This simple analysis was performed to construct this chart:

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