The U.S. economy is inching along, productivity is flagging and millions of Americans appear locked out of the labor market. One key factor intertwined with this loss of dynamism: The U.S. is creating startup businesses at historically low rates.
A growing number of closed-end funds are trading at prices above the value of their assets, a market distortion that could subject holders to sharp declines should interest rates pick up. ‘We are advising people not to buy,’ said one fund chief.
Investors hungry for income have driven up to lofty levels the premiums on dozens of closed-end funds, exposing investors to steep, sudden losses and prompting one prominent manager to warn investors away from his own funds.