Weekly Commentary | May 18, 2025 | US Downgrade, Rights Offerings, DMA

Summary

• Market sentiment is positive as trade war tensions ease and inflation data cools, supporting a continued equity rally and tighter CEF discounts.

• I recommend rotating out of overvalued CEFs with unsustainable distributions, like BHK and RSF, and favoring funds with better risk/reward profiles.

• The Moody’s US credit downgrade is largely symbolic; any…