Replies to post #127 on Cornerstone Strategic Value Fund (CLM)

[bar1080]

Simple S&P 500 index funds trounced CFP during that period. That's especially true for wealthy investors who prefer capital gains to highly taxed ordinary dividends. Also SPY has management fees of about 0.08% vs 1.3% for CFP (as I recall).

You're overlooking the fact that the S&P 500 Index numbers (or the DOW) don't include its dividends of about 3% a year in recent years.

New Fed chairman and Yale grad Janet Yellen has most of her fortune in ultra low cost Vanguard index funds. Not garbage like this.

[lesgetrich]

I don't understand your hostility to this stock. Perhaps you bought their IPO pre-recession and got badly burned. However, you know the standard disclaimer about past performance. It can apply equally to losers. One can always claim, with any stock, had I bought x instead of y I could have done better. Right now, going forward, this looks like a decent investment for a retiree looking for steady income. Yes, one should go into it with eyes open and know that your principle could be eroded to some extent. However, with a growing economy it could also expand. If the principle erodes less than 17% (the current yield) you still come out ahead. However, as with any stock, don't put all your eggs in one basket.