_______________________________ Sent: Monday, August 16, 2010 4:37 PM Subject: Risk/Reward No. 15 THIS IS NOT ADVICE, INVESTMENT OR OTHERWISE. THIS IS A PERSONAL REFLECTION ON INVESTING. RELY ON NOTHING STATED HEREIN I remain impressed with municipal bond CEF's. Since the last newsletter, I bought EIM and IQT. (Note: for those that are concerned, the amount of AMT holdings in each of these is small). Indeed, CEF's in general provide good liquidity and diversification in various asset classes. I like some of the corporate bond and senior loan funds. I recently bought NSL, PHK and JHI. Again, CEF's are not mutual funds or ETF's. They trade differently and you should study these differences. Late last week I added to my GLD holdings and started a position in ING trust preferreds by purchasing ISQ. The search for yield is getting overheated. Several CEF's are trading well above their NAV which in normal times would be troublesome. Although yield is hard to find, AVF, the GE baby bonds and DUA continue to appreciate and still trade at reasonable levels given the r