This fund is a great idea for income and savings

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This fund is a great idea for income and savings

- a lot longer! The FOMC notes were printed last week when Fed officials predicted higher interest rates would be with us through 2026. This caught many investors by surprise because the hopes were that rates could drop eventually in 2024.

I am not convinced the Fed can keep rates high until the end of 2026 without breaking anything in the economy, he said.

In the here and now, inflation is still up above 4.0%, which is why it's important to focus on income-producing investments for your portfolio.

As always, one of my favorite methods for generating income is through closed-end funds.

CEFs are a type of mutual fund that issue a limited number of shares through a single initial public offering to raise capital for its initial investments. The shares can then be traded on a stock exchange, but no new shares will be created and no new money will flow into the fund.

This means that you can purchase shares of a CEF at an actual discount to the NAV.

With the ability to buy shares of CEFs at a discount to their NAV, CEFs can be a great choice for investors looking for a professionally managed income-producing portfolio.

This week I'm watching Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund, a closed-end fund that invests in a diversified portfolio of common stocks and writes call options on one or more U.S. and foreign indices on a substantial portion of its common stock portfolio to generate current earnings from the option premiums.

The fund's portfolio contains 287 equity holdings with household names such as Apple Inc., Microsoft Corporation, Amazon.com Inc., LVMH Mot Hennessy Louis Vuitton SE, and Nestlé SA, among others, with weightings of 6.41%, 5.61%, 3.09%, 2.29% and 2.20%.

As of Q2 2023, 96% of the stock portfolio has call options written, with an average of 16 days until expiration and strike prices that are, on average, 0.30% out-of-the-money.

BCAT is not only trading at a significant -10.8% discount to its NAV, but it also delivers a healthy 9.09% yield. This is more than double the rate of inflation and nearly double what you can get in most high-yielding money market accounts.

Be careful out there and keep an eye out for more opportunities later in the week.

This Stock Is Yielding Over double the inflation rate right now appeared on total wealth.

Here Are 10 Ways to Earn 10% or Better on Your Money Every quarter appreciation is great, but it's possible to get even more out of shares you own. A lot more: you can easily beat inflation and collect regular income to spare yourself. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks - passive income changed. In 1982, he founded his first hedge fund from his seat on the board of the Chicago Board of Options Exchange. Shah worked in 'the pit' as a market maker when options on the S&P 100 began trading on March 11, 1983. He laid the foundation for what would later become the VIX, which is now one of the most widely used indicators globally. After leaving Chicago to run Lloyd's TSB's futures and options division, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. He originates there and founded a packaged fixed-income trading desk and established that company's 'listed' and OTC trading desks. In 1999, Shah established a second hedge fund, which he operated until 2003. Shah's vast network of contacts includes the world's biggest investors on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.