Don, Several ideas. Some are boring, but they work.
1. Discounted Closed End Income funds with a limited lifespan. Yes, I hate brain dead leveraged mortgages, but these guys have done such a lousy job in the past that their funds are bargains now. Some I like are Nations 2003 and 2004 (NGI and NGF) at about 6 1/2%, Blackrock Investment Grade 2009 (BCT) yielding over 7%, and Hyperion 2005 (HTO), yielding 6% and selling at a 14 % discount to NAV. True, a crash will hurt fixed income, but these funds are short enough and discounted enough that they may attract interest and stay afloat.
2. Safer country CEFs. Chile and Switzerland are two of my favorites, especially now that the Swiss are buying gold again. (SWZ and CH). Both have discounts over 20% to NAV.
3. Convertible CEFs. This is a coward's way of playing a toppy market with perhaps a bit left in it. My current favorite is Gabellin Convertible, (GCV), with an 8% discount. I used to like Van Kampen-American Capital, but they have gone through John Harloe, Jim Berhman and myself, the three best convert managers in the country, and they aren't going to find anyone of that quality to manage this thing now. <G> about me, as I only ran it for 4 months.
4. Assets. Buy gold, platinum, palladium, silver, and diamonds. The usual suspects here, NEM, IMPAY, SWC, HL, DBRSY. Also, look at the auction houses. Oddly enough, the seriously rich in this country get more out of control when the markets fall apart and become very ostentatious in buying things.
5. Look at Rydex Ursa.
MB |
