ASG Overview

Shift in American Happiness: A significant decline in happiness among Americans has been observed, with the percentage of those feeling unhappy reaching a new high in 2022, which could impact investment behaviors and market perceptions.

Consumer Confidence Concerns: Despite low unemployment and rising incomes, consumer confidence remains lower than during the pandemic, indicating a growing sense of pessimism that could affect economic decisions and market trends.

Market Misinterpretation of Sentiment: Traditional indicators of fear and greed in the market may no longer be reliable, as negative attitudes do not necessarily predict sell-offs, presenting opportunities for contrarian investors to capitalize on market overreactions.

Investment Opportunities in CEFs: Closed-end funds (CEFs) like the Liberty All-Star Growth Fund (ASG) are currently undervalued due to heightened investor caution, offering attractive yields and potential for price recovery as market sentiment shifts.

Bankruptcy Impact on BDCs: The bankruptcy of auto-parts supplier First Brands has raised concerns about business development companies (BDCs), which provide loans to small and mid-sized firms, leading to fears of more issues in the private-credit market.

Caution Against High-Yield BDCs: Investors are advised to be cautious of BDCs like Blue Owl Capital and Prospect Capital Corp, which have high fees and poor long-term performance, making them less attractive despite their high yields.

Alternative Investment Recommendation: The Liberty All-Star Growth Fund (ASG) is highlighted as a better investment option, offering a 9% dividend and a significant discount to NAV, outperforming BDCs in total return.

Upcoming Investment Opportunities: The author plans to release a "mini-portfolio for 2026" featuring four high-yield closed-end funds (CEFs) with an average yield of 9.2% and potential for over 20% price upside, encouraging readers to access this information.