3 replies to this topic

[ogm]

Premiums/discounts on closed end funds are sometimes used as a sentiment indicator. And in the last 2 days a lot of the CEF were absolutely slaughtered and now many are trading at heavy discounts. For example.. China funds.. CHN and GCH ... Trading at about 20% discounts after today. Consider that China is an emerging economic leader, and their stock market is the strongest in the world right now. Its barely pulling back with all this mess. So if you buy the China CEFs here.. you get a whooping 20% discount. That means even if Chineese market falls 20 % you're still getting a good deal. And as for the US equity related CEF's there is an absolute murder in the past 2 days. Just about everything that was trading at some kind of premium is now trading at discounts. Sometimes 10-15% discounts to NAVs.

[DraggdOut]

The former, CHN, is predominately invested in the People's Republic (e.g. Taiwan), not mainland China. GCH is mostly hang seng, but it's far and awy the more worthwhile buy of the two.

[dasein]

Premiums/discounts on closed end funds are sometimes used as a sentiment indicator.


And in the last 2 days a lot of the CEF were absolutely slaughtered and now many are trading at heavy discounts.

For example.. China funds.. CHN and GCH ... Trading at about 20% discounts after today. Consider that China is an emerging economic leader, and their stock market is the strongest in the world right now. Its barely pulling back with all this mess.

So if you buy the China CEFs here.. you get a whooping 20% discount. That means even if Chineese market falls 20 % you're still getting a good deal.



And as for the US equity related CEF's there is an absolute murder in the past 2 days. Just about everything that was trading at some kind of premium is now trading at discounts. Sometimes 10-15% discounts to NAVs.

Hmmm I cant remember if it was Templeton or Weiss, but I believe in normal times you buy a CEF at 15-20% discount and sell at 12 prem - I did it, and before the bubble it was easy enuf to find. IIRC the east germany fund went from 20% discount to like 25% discount over some years, until it was finally liquidated..... in not normal times, 20% is not good enough for the Chinese market, IMO.

klh

[vitaminm]

http://finance.yahoo.....N,GCH pgj gxc