Las Vegas Non-Profits and the COVID Crisis
Despite the overwhelming challenges Las Vegas and Southern Nevada have faced in 2020, the help, assistance, and contributions from a variety of local charities have not only positively impacted the lives of many grateful beneficiaries, but also fulfilled the lives of those in a position to give.
Elections and the Bond Market
There are many major policy decisions that will influence the outlook—trade, energy, taxes and budget deficits, and pandemic relief. However, it’s difficult to assess how these issues will be addressed post-election, and even more unpredictable how the market will react.
Gundlach Predicts Trump Victory; David Rosenberg Not So Sure
Jeffrey Gundlach, who famously predicted Trump’s victory in 2016, says the president will secure another term. David Rosenberg acknowledged that possibility, but is not so sure of the outcome. Both offered their predictions for the post-election economy and markets.
Activist Investors are Distorting the Closed-End Fund Market
The Investment Company Act of 1940 contains a loophole providing institutional investors an advantage over individual investors that some are using to the detriment of closed-end funds and their retail investors.
Investment Grade Credit Update: An Exceptionally Eventful Year That Has Created Opportunities
The investment grade fixed income market has been unusually active in 2020. Initial concerns about Covid-19 triggered a sharp selloff, but sentiment abruptly reversed when the Fed announced plans to purchase corporate bonds. Spreads have nearly returned to their pre-pandemic levels, but not all sectors have recovered equally, creating interesting opportunities for savvy investors.
Gundlach – Trump will Defeat Biden; Avoid the Bond Market
Jeffrey Gundlach, who famously predicted Donald Trump’s victory in 2016, said that the president will defeat the presumptive Democratic nominee, Joe Biden, in November. He also dimmed the expectations of fixed-income investors when he said to avoid short- and long-term bonds.
CEF Yields and More
Closed-end funds are known for leveraged income generation, but yields can come from a range of sources, strategies and products. John Cole Scott, founder of the Active Investment Company Alliance and chief investment officer of CEF Advisors, offers his perspective on the current CEF landscape and challenges presented by the coronavirus, not to mention the presidential election and recession recovery. Scott also shares his excitement about the AICA online CEF conference on Aug. 13, featuring the “best and brightest” minds in the CEF industry.
Muni Closed-End Funds Update With Dave Lamb
Municipal Bond Closed-end Funds, like most investments, have felt the impact of the coronavirus-stricken economy. But Dave Lamb of Nuveen says Muni CEFs have rebounded well, especially those with higher quality credits. Despite potential concern of a recession-driven shortfall of taxes supporting munis, Lamb is optimistic about the future. He says it’s an “opportune time to invest in closed-end funds.” He expects discounts to continue to narrow and notes the low cost of leverage has helped lead many funds to increase distributions.
Earnings Season Begins with Low Expectations; Will it Be a Catalyst?
It is safe to say that expectations are low as the bottom up consensus for the S&P 500 calls for a year over year earnings decline of about 45% in the 2Q. This would be the largest year over year decline since 2008. But that is well understood at this point.