With Cornerstone, some players have learned how the dilution/Rights Offering cycle works and are trying to ride along, at the expense of traditional Buy/Hold fund investors. That might work during a strong bull market like we've had since 2009, but what happens when there are no fat capital gains to fund the 20% payout? What happens to Cornerstone Funds in a bear market? Or in a period when the funds trade at a discount to NAV? If this past week or two is any guide, it could get ugly:
______________________________________________________________ Because the Good Life is Just a Pump or Two Away
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.