This market has reached a once-in-two-year turning point. And it’s made our favorite income investments—closed-end funds (CEFs)— terrific contrarian buys. That’s because the best of these funds pay high dividends, usually on the order of 7%+ yields, that can get us through a market downdraft. The vast majority of CEFs pay dividends monthly, too. Then, when markets bounce, our CEFs’ discounts to net asset value (NAV, or the value of the stocks in their portfolios) snap shut, giving their prices an extra shove higher. The 7.9%-yielding CEF we’ll talk about in a second is a perfect example: its discount rises and falls in a predictable cycle, and that discount is now sitting near once-in-two-year lows.… Read more