June 3, 2014
UPDATE THIS WAS SOLD. Every once in a while, don’t you feel like gambling??!! But it’s not necessary to travel all the way to Las Vegas or your local casino.
Here at luvthosedividends, we don’t gamble. But,,,,,,, after reading about UBS ETRACS Monthly Pay 2xLeverageed Closed End Fund (CEFL) which pays 16%, I got interested. So what is this thing???
Essentially CEFL is an exchange traded note that contains 30 well known closed end funds with some leverage thrown in to get the yield up to 16%. There are almost 1,000 securities giving you huge diversification.
Needless to say very risky. BUT it does contain living breathing closed end funds that invest in gold, stocks, high yield bonds, et al. So it’s not a scam or fake oil well.
I suggest you take a very small position and we will track the results, adding if it does well. This is risky money but you also have the potential of earning very large dividend checks.
The markets in general seem to be heading higher and this is a primary reason that I am even looking at CEFL I think we can do ok. I suggest you enter stop orders to prevent any big losses.
Here is an excellent article for more info:
**********Go to “Core Portfolio” for current holdings.**********