I know it's a little strange that a blog dedicated to commodity-related investments has had mostly financial-sector trades recently. However, that's where the values are. I was going to spend most of this post talking about the railroads, but credit got in the way.
Last week I recommended buying closed-end loan funds big time. So far it is up 5%. The trade was in the WSJ yesterday, adding to the gains. I believe this has more to go, maybe another 7%. However, 5% in a week is a lot. So I am:
1. Taking a little off, making it only a "big" trade not a "pig" trade.
2. Hedging it with S&P futures, face value delta about .5.
more to come.....
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