Under the Radar: Why Income Investors Are Loading Up on These Mispriced Assets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2025
0mins
Source: Benzinga
Investment Opportunity in Closed-End Funds: Closed-end funds (CEFs) are currently undervalued and can be purchased at a discount, providing opportunities for income investors to capitalize on mispricing and yield while waiting for market sentiment to improve or activist investors to unlock value.
Role of Activist Investors: Activist investors like Phil Goldstein and Boaz Weinstein are actively buying discounted CEFs and pushing for changes to enhance shareholder value, demonstrating that strategic involvement can lead to significant returns.
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Analyst Views on GF
Wall Street analysts forecast GF stock price to rise
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Current: 10.170
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Current: 10.170
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About GF
The New Germany Fund, Inc. (the Fund) is a diversified, closed-end management investment company. The Fund seeks long-term capital appreciation primarily through investment in middle-market German equities. The focus of the Fund's investments lies within Germany. Under normal market conditions at least 80% of the Fund’s net assets are invested in equity or equity-linked securities. The Fund invests in range of sectors, which include aerospace and defense; auto components; automobiles; banks; building products; chemicals; electrical equipment; independent power and renewable electricity producers; insurance; Internet and direct marketing retail; information technology (IT) services, life sciences tools and services; metals and mining; real estate management and development; software; textiles, apparel and luxury goods; trading companies and distributors; diversified financial services; commercial services and supplies, and others. The Fund's investment advisor is DWS International GmbH.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Germany's Retail Sales Data
- Retail Sales Growth: In February 2026, Germany's retail sales increased by 0.70% year-over-year, falling short of the 1% estimate, indicating weak consumer spending growth that could undermine economic recovery confidence.
- Month-over-Month Decline: Retail sales in Germany decreased by 0.60% month-over-month, missing the 0.2% growth forecast, reflecting short-term consumer demand weakness that may lead to a slowdown in economic growth.
- Market Reaction: Following the release of Germany's retail sales data, the EUR/USD found support above 1.1495, indicating cautious optimism in the market regarding future trends, potentially pushing the exchange rate towards the 'expanding wedge' resistance range.
- Investor Sentiment: European markets started the week in neutral gear as investors weighed Trump's threats regarding Iran, maintaining a wait-and-see approach that could impact short-term investment decisions and market volatility.
See More
European Markets Steady Amid Rising Oil Prices and Inflation Concerns
- Cautious Market Sentiment: Investor caution has intensified as President Trump mentioned the potential seizure of Iran's oil resources, leading to oil prices surging to their highest levels since 2022, which raises inflation concerns.
- Stable Stock Market Performance: The London stock market rose by 0.74% to 10,042.12, Germany's DAX increased by 0.04% to 22,324.61, and France's CAC climbed by 0.36% to 7,729.84, indicating market focus on upcoming economic data.
- Retail Sales Data: Spain's retail trade increased by 2.2% year-on-year in February, down from 3.8% in January and below analysts' expectations, while Sweden's retail sales rose by 2.4%, also lower than the previous month's 3.9%, reflecting a trend of slowing consumer spending.
- Economic Indicator Changes: Switzerland's KOF Economic Barometer fell to 96.1 in March, the lowest since June 2025, indicating potential economic slowdown, and market expectations regarding ECB policy have shifted significantly.
See More
European Markets Mixed as Trump Delays Iran Strike
- Market Volatility: European equity markets exhibited mixed performance on Friday as President Trump postponed a planned strike on Iranian energy infrastructure until April 6 to facilitate ongoing negotiations, highlighting market sensitivity to geopolitical risks.
- Retail Sales Decline: UK retail sales volumes fell by 0.4% month-on-month in February 2026, following a revised 2% increase in January, indicating that fluctuations in consumer confidence may impact the pace of economic recovery.
- Rising Inflation: Spain's annual inflation rate surged to 3.3% in March, the highest since June 2024, exceeding market expectations of 3.7%, which could influence the European Central Bank's monetary policy decisions.
- Natural Gas Futures Rise: European natural gas futures climbed to €56.6 per MWh, extending gains from the previous session, reflecting the ongoing uncertainty in the Middle East's geopolitical landscape and its impact on energy markets.
See More
European Market Climate Indicators Decline
- Consumer Confidence Decline: Germany's GfK Consumer Climate Indicator fell to -28 heading into April 2026 from -24.8, indicating worsening consumer sentiment that could lead to reduced spending and negatively impact overall economic growth.
- Manufacturing Climate Deterioration: France's manufacturing business climate index dropped to 99 in March from 102 in February, reflecting a slowdown in manufacturing activity that may dampen investor confidence and lead to downward revisions in corporate earnings expectations.
- Trade Surplus Narrowing: Sweden recorded a trade surplus of SEK 1.8 billion in February, sharply down from SEK 12.1 billion in the same month last year, suggesting weakened external demand that could pressure Sweden's economic growth.
- Increased Market Volatility: The pan-European Stoxx 600 index fell 0.72% amid rising tensions between the U.S. and Iran, with miners and technology stocks leading declines at 3% and 1.2%, respectively, highlighting market sensitivity to geopolitical risks.
See More
European Markets Rebound Amid Stable Inflation and Optimism
- Stable Inflation: UK inflation remained steady at 3% in February, indicating economic stability that could help maintain consumer confidence and spending, thereby supporting economic growth.
- Market Rebound: The pan-European Stoxx 600 index rose by 1.46% to 587.3, driven by growing optimism over a potential resolution to the Middle East conflict, which may boost investor confidence.
- Retail Sales Growth: Denmark's retail sales increased by 2.2% year-over-year in February, reflecting sustained consumer spending that could positively impact economic recovery.
- Declining Bond Yields: The yield on the US 10-year Treasury fell by 6 basis points to 4.33%, indicating cautious market expectations for future economic growth, which may influence investors' asset allocation strategies.
See More
Euro Area Composite PMI Falls to 50.50
- Composite PMI Decline: The Euro Area's Composite PMI fell to 50.50 in March 2026 from 51.90 in February, missing market expectations and indicating signs of economic slowdown that could impact investor confidence and consumer spending.
- Manufacturing PMI Increase: In contrast to the overall PMI decline, the Euro Area's Manufacturing PMI rose to 51.40 in March 2026 from 50.80 in February, suggesting that manufacturing activity is still expanding and may provide some support for the economy.
- Services PMI Drop: The Services PMI for the Euro Area decreased significantly to 50.10 in March from 51.90 in February, contrasting with manufacturing, and reflecting increased pressures in the service sector that could hinder overall economic recovery.
- Economic Growth Slowdown: Business activity in Germany and France both slowed in March, with Germany's growth weakening and France's economy facing intensified supply-side pressures, highlighting the growing economic challenges in the Euro Area that may influence future policy decisions.
See More
Analysis of Germany's Retail Sales Data
- Retail Sales Growth: In February 2026, Germany's retail sales increased by 0.70% year-over-year, falling short of the 1% estimate, indicating weak consumer spending growth that could undermine economic recovery confidence.
- Month-over-Month Decline: Retail sales in Germany decreased by 0.60% month-over-month, missing the 0.2% growth forecast, reflecting short-term consumer demand weakness that may lead to a slowdown in economic growth.
- Market Reaction: Following the release of Germany's retail sales data, the EUR/USD found support above 1.1495, indicating cautious optimism in the market regarding future trends, potentially pushing the exchange rate towards the 'expanding wedge' resistance range.
- Investor Sentiment: European markets started the week in neutral gear as investors weighed Trump's threats regarding Iran, maintaining a wait-and-see approach that could impact short-term investment decisions and market volatility.
See More
European Markets Steady Amid Rising Oil Prices and Inflation Concerns
- Cautious Market Sentiment: Investor caution has intensified as President Trump mentioned the potential seizure of Iran's oil resources, leading to oil prices surging to their highest levels since 2022, which raises inflation concerns.
- Stable Stock Market Performance: The London stock market rose by 0.74% to 10,042.12, Germany's DAX increased by 0.04% to 22,324.61, and France's CAC climbed by 0.36% to 7,729.84, indicating market focus on upcoming economic data.
- Retail Sales Data: Spain's retail trade increased by 2.2% year-on-year in February, down from 3.8% in January and below analysts' expectations, while Sweden's retail sales rose by 2.4%, also lower than the previous month's 3.9%, reflecting a trend of slowing consumer spending.
- Economic Indicator Changes: Switzerland's KOF Economic Barometer fell to 96.1 in March, the lowest since June 2025, indicating potential economic slowdown, and market expectations regarding ECB policy have shifted significantly.
See More
European Markets Mixed as Trump Delays Iran Strike
- Market Volatility: European equity markets exhibited mixed performance on Friday as President Trump postponed a planned strike on Iranian energy infrastructure until April 6 to facilitate ongoing negotiations, highlighting market sensitivity to geopolitical risks.
- Retail Sales Decline: UK retail sales volumes fell by 0.4% month-on-month in February 2026, following a revised 2% increase in January, indicating that fluctuations in consumer confidence may impact the pace of economic recovery.
- Rising Inflation: Spain's annual inflation rate surged to 3.3% in March, the highest since June 2024, exceeding market expectations of 3.7%, which could influence the European Central Bank's monetary policy decisions.
- Natural Gas Futures Rise: European natural gas futures climbed to €56.6 per MWh, extending gains from the previous session, reflecting the ongoing uncertainty in the Middle East's geopolitical landscape and its impact on energy markets.
See More
European Market Climate Indicators Decline
- Consumer Confidence Decline: Germany's GfK Consumer Climate Indicator fell to -28 heading into April 2026 from -24.8, indicating worsening consumer sentiment that could lead to reduced spending and negatively impact overall economic growth.
- Manufacturing Climate Deterioration: France's manufacturing business climate index dropped to 99 in March from 102 in February, reflecting a slowdown in manufacturing activity that may dampen investor confidence and lead to downward revisions in corporate earnings expectations.
- Trade Surplus Narrowing: Sweden recorded a trade surplus of SEK 1.8 billion in February, sharply down from SEK 12.1 billion in the same month last year, suggesting weakened external demand that could pressure Sweden's economic growth.
- Increased Market Volatility: The pan-European Stoxx 600 index fell 0.72% amid rising tensions between the U.S. and Iran, with miners and technology stocks leading declines at 3% and 1.2%, respectively, highlighting market sensitivity to geopolitical risks.
See More
European Markets Rebound Amid Stable Inflation and Optimism
- Stable Inflation: UK inflation remained steady at 3% in February, indicating economic stability that could help maintain consumer confidence and spending, thereby supporting economic growth.
- Market Rebound: The pan-European Stoxx 600 index rose by 1.46% to 587.3, driven by growing optimism over a potential resolution to the Middle East conflict, which may boost investor confidence.
- Retail Sales Growth: Denmark's retail sales increased by 2.2% year-over-year in February, reflecting sustained consumer spending that could positively impact economic recovery.
- Declining Bond Yields: The yield on the US 10-year Treasury fell by 6 basis points to 4.33%, indicating cautious market expectations for future economic growth, which may influence investors' asset allocation strategies.
See More
Euro Area Composite PMI Falls to 50.50
- Composite PMI Decline: The Euro Area's Composite PMI fell to 50.50 in March 2026 from 51.90 in February, missing market expectations and indicating signs of economic slowdown that could impact investor confidence and consumer spending.
- Manufacturing PMI Increase: In contrast to the overall PMI decline, the Euro Area's Manufacturing PMI rose to 51.40 in March 2026 from 50.80 in February, suggesting that manufacturing activity is still expanding and may provide some support for the economy.
- Services PMI Drop: The Services PMI for the Euro Area decreased significantly to 50.10 in March from 51.90 in February, contrasting with manufacturing, and reflecting increased pressures in the service sector that could hinder overall economic recovery.
- Economic Growth Slowdown: Business activity in Germany and France both slowed in March, with Germany's growth weakening and France's economy facing intensified supply-side pressures, highlighting the growing economic challenges in the Euro Area that may influence future policy decisions.
See More
