High Yield Spotlight

I continue to feel that junk bonds don’t present an attractive risk/reward tradeoff. Many fixed income CEFs are low quality portfolios, some of which are VERY low. It’s tough to find a good mix of credits and higher quality within the CEF universe, but there are a few options. The Invesco Bond Fund (VBF) isn’t a pure investment-grade bond fund, but it’s close.

The revelation that China’s DeepSeek AI solution may be as robust as ChatGPT yet only a fraction of the cost has shaken the tech sector. Tech valuations were already a bit stretched prior to this and the overconcentration of this sector in the major averages made it vulnerable to a sharp correction like this. The BlackRock Science & Technology Trust (BST) uses a covered call approach to investing in the tech sector.

It’s impossible to look at the historical performance of the Adams Diversified Equity Fund (ADX) and not be at least a little intrigued. After all, it’s beaten the S&P 500 over the past 1-, 3-, 5- and 10-year holding periods. Sometimes there’s a reason why a fund has performed as well as it has. For ADX, that reason is that it looks just like the S&P 500!