Three CEF Options To Buy Now For Those That Are Bullish With Yields Up To 10%

Summary

• Risks still abound in the market and whether a bottom has been made or this is just a bear-market rally remains to be seen.

• For investors that are more buy-and-hold or longer-term investors, we offer up three options in the taxable space that pay yields near double-digits.

With all the bearishness out there today, it wouldn't surprise me to see at least a meaningful bear market rally- more so than we've seen in the last few years.  A more meaningful bear market rally would possibly last a couple of months and could recover a significant amount of the losses we've incurred this year.

I'm still more moderately bearish and think there is another shoe to drop- namely margins coming in and earnings really coming down in the back half of this year and early next year.  That could really reduce EPS estimates for the S&P 500 to about $215 which, applying a 16x multiple to, means a warranted value of 3,440.  But I'm no macro specialist.  That was a prior life when I was an economics major.

I do see a few options in the taxable space that I think are buyable today for those that do like to buy-and-hold.  If we are reviewing this report two years from now, I do not think an investor will be sorry that they made these purchases.