CLM has a long history of cutting its payout. Currently $0.237. 0.284 in 2016. 0.368 in 2015, and 41 cents in 2013.
Pandatrader has about half his retirement fund in the two Cornerstone funds which is nutty considering the rest his portfolio is spread over about 50 investments, mostly CEFs and a few individual stocks
In a long bear market CLM's payouts would be increasingly ROC as capital gains become scarce. CLM would start shrinking again and would have to resort to more ROs to stay alive. Management fees and expense % would rise. NAV premium (25% recently!) would disappear and the fund could well remain at a NAV discount.
Fewer shareholders would subscribe to the ROs and shareholders might start walking away. You could have a snowballing of problems, and at the very worst time.
Dangers I've been warning about seem to be now happening. There's a lot of hot money in CLM. This isn't your grandpa's mutual fund!
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