Tuesday, January 5, 2010

Everything is ok...yes really it is

Dow 30 Enhanced Premium & Income Fund 

Dow 30 Enhanced Premium & Income Fund Inc. (the Fund) is a diversified, closed-end management investment company. The investment objectives of the Fund are to provide a high level of premium and dividend income, and the potential for capital appreciation. The Fund pursues its investment objectives principally through a multi-step strategy. The Fund will purchase the 30 common stocks included in the Dow Jones Industrial Average (DJIA Index), weighted in approximately the same proportions as in the DJIA Index (the Dow Stocks). The Fund will also purchase other securities or financial instruments, primarily swap contracts, designed to provide additional investment exposure (leverage) to the return of the Dow Stocks (the Additional Dow Exposure). The Fund also will engage in certain option strategies, primarily consisting of writing (selling) covered call options on some or all of the Dow Stocks (the Options). The Fund’s investment advisor is IQ Investment Advisors LLC
Do you believe them? and if this represents what people are thinking about the income prospect for the DOW 30...the story is not what they are putting out on CNBS.

The last time I saw funds collapsing like this...was when Hedgefunds were going down because they had illiquid mortgage backed securities on their books...if you believed that reason then the you can believe what you want now. Those blow ups started in 2007 and now we have this - timed right with the highs in the market...and on heavy volume too. NOT A GOOD SIGN TO SAY THE LEAST. Best to be very careful, about adopting bullish positions.

Good job Bernake and Geithner...are all your buddies happy with their bonuses.
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