CE Fund Fire Sale in Leveraged RE and International Equity

It's that time of year.   Tax motivated sellers are throwing out the babies with the bath water to book their losses.  And this year's losers appear to be in the Leveraged RE (ie AWP, IGR) and Leveraged International Equity (ie ETO, ETG, EVT) areas of the market:




On the other end of the spectrum, money is flowing into Utility and High Yield Bond funds to the point that their premiums to NAV are being pushed higher than their 2011 averages. If you want to go against this flow, buy the RE and International Equity. Sell the Utility and High Yield Bonds.  These spreads should reverse into mid to late Jan.

Source for Info. - CEF Connect