Introducing The Buzzword CEF!!

I'm not calling a top but I am calling for what we refer to on the fireline a watchout situation. Recently there was a closed end fund priced for trading at the NYSE called the Dividend Capital Realty Income Allocation Fund (DCA). Aside from a great ticker symbol, the name captures almost all the trends of the day, except for maybe selling options.

The fund has been trading for a short while so it is still at a premium to its NAV and it has not declared its first dividend. For all I know this fund may turn out to be the best income CEF in the US. I am still amused by the title and I take seriously the threat that is posed when a lot of products that do almost the same thing get created in a short time.

A lack of a flood of new investment products that focus on energy and materials may be anecdotal evidence that there is no problem in those sectors.