GOF's Selloff Offers A Valuation Lesson With A Potential Silver Lining

Summary Guggenheim Strategic Opportunities Fund now trades at a rare near double-digit discount, a level not seen since 2016. GOF's ATM share issuance, historically accretive and key to funding its 22.7% distribution, is halted while the fund trades at a discount. Future NAV returns may decline, and a distribution cut could occur, potentially widening the discount but also creating a buying opportunity. I do much more than just articles at CEF/ETF Income Laboratory: Members get access to model portfolios, regular updates, a chat room, and more. Learn More » mustafaU/iStock via Getty Images This has not been a fun year for Guggenheim Strategic Opportunities Fund ( GOF ) shareholders. GOF is a highly popular closed-end fund in the taxable multisector space, prized for years by income investors for its outsized monthly This article was written by Stanford Chemist 20.83K Followers Follow Stanford Chemist is a scientific researcher by training. For the past decade he has been providing analysis and evidence-based ways of generating profitable investments with CEFs and ETFs. He leads the investing group CEF/ETF Income Laboratory. Features of the service include: managed income portfolios (targeting safe and reliable ~8% yields) making use of high-yield opportunities in the CEF and ETF fund space. These are geared toward both active and passive investors of all experience levels. The vast majority of {CEF/ETF Income Laboratory} holdings are also monthly-payers, for faster compounding and steady income streams. Other features include 24/7 chat, and trade alerts. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.