Author Archive: Michael Foster

The year isn’t even four months old, and we’ve already been hit with three events that would normally send markets tumbling:

• The Iran conflict.
• The hit to software stocks, after AI raised concerns about their business model.
• The private-credit collapse.

We’re going to zero in on that third point today, because while the Iran situation is an ongoing tragedy, it will be resolved at some point. When it does, the relief rally will likely be significant.

The software story is similar. Over time, I see these stocks as winners in the AI race, not victims.

But the private-credit tale is different, because what it’s actually telling us about the economy—that it’s stable and growing—is the exact opposite of what most people think it’s saying.… Read more

Wall Street and the press have it all wrong on the US economy. Here’s the truth:

It’s stable—and growing.

I know. Boring, right? Maybe to most people. But not to us!

The narrative put forth by the press and punditry—that inequality is rampant and getting worse—lends itself to much more compelling headlines (which is why we’re not hearing much about it).

Worries around this inequality—namely that it will cause more political instability and pile risk on to the economy as a whole—are part of what’s been weighing on stocks lately. That and concerns about the Iran War, the direction of interest rates, unpredictable trade policy and others (it’s a long list!).… Read more

AI is making real money—I’m talking about $30 billion in revenue for just one leading AI firm.

On April 6, this company, Anthropic, maker of the Claude chatbot, reported annualized revenue of $30 billion.

That’s a stunning figure, and we’re going to benefit from it—and collect an 8.3% dividend while we do. Our vehicle? One of our favorite tech-focused closed-end funds (CEFs).

What’s more, this fund is a bargain, trading at an 11% discount to net asset value (NAV, or the value of its underlying portfolio) as I write this.

Let’s back up a sec.

That $30-billion figure is surprising enough, but the growth rate is equally stunning: up more than 200% from just last year:

Source: CEF Insider

Put another way, Anthropic has calculated annualized revenue on par with the total revenue posted by Clorox (CLX), Ralph Lauren (RL), Church & Dwight (CHD), Domino’s Pizza (DPZ) and Hasbro (HAS) combined.… Read more

The ever-evolving situation in the Middle East has left a lot of uncertainty in the air. But in unpredictable times like these, the best move is often simply this: stay the course.

Investors in high-yielding closed-end funds (CEFs) know this. Our favorite income plays throw off dividends averaging 9%. That means we can sit back, wait out volatility and get paid handsomely as we do.

And some CEFs, like our long-time portfolio holding the Adams Diversified Equity Fund (ADX), go one further: ADX kicks out an 8.3% dividend as I write this. And it does this while outperforming the S&P 500 over the long haul.… Read more

Something crucial is happening in AI—just as the situation in Iran pulls attention the other way.

More experts—and more importantly, more data—is pointing to something we’ve been arguing at all along: AI is a productivity “unlock” that will slash corporate costs and boost growth.

Six months ago, most people worried that AI would be at best a disappointment and at worst a bubble. Now the data is starting to tell us something else: It’s poised to drive profits higher.

But because of the Iran situation, this shift isn’t getting the attention it deserves. That’s handing us a chance to get ahead of the curve as AI bears give way to AI bulls.… Read more

There are three stories moving markets right now:

1. The Iran War.
2. The AI revolution, as heavy investments in the tech cause both excitement and worry, particularly around how AI affects software companies.
3. The private-credit market. Because many software companies relied on credit from private, non-bank lenders, the world of private credit (which went from about $500 billion a decade ago to about $3 trillion today) is wobbling.

All three are combining to put pressure on private-credit funds. That, of course, is a headache for private-credit investors, especially because they were marketed on the idea that they offer lower volatility.

We are now seeing managers of private-credit funds field redemption requests that exceed these funds’ withdrawal “caps.”… Read more

Iran War volatility has tossed finance stocks “out with the bathwater.” It’s giving us a nice “second chance to buy” my favorite finance-focused dividend.

That would be the John Hancock Financial Opportunities Fund (BTO), which yields 7.7% today and, as we’ll see, trades at a discount that’s double what most investors think it is.

Why April 2026 Could Be April 2025 Redux (But With a Faster Rebound) 

To see why I think the market is making a mistake when it comes to finance stocks, let’s rewind to last year, when stocks sold off on the so-called “Liberation Day” tariffs.

From the Spring 2025 Selloff …

That selloff has actually looked a lot like this one so far, with a similar depth:

… to Its 2026 “Twin”

Here’s what I really want to draw your attention to: In 2025, the finance sector—shown by its benchmark ETF in purple below, didn’t fall as hard as the rest of the market, and soared on the other side:

Finance Beat the S&P 500 in the 2025 Plunge …

Fast-forward to this year, and finance stocks are being hit harder in the Iran War fallout, falling much further than the market since the start of the year.… Read more

There’s an activist story shaking the CEF world right now. And no matter how it plays out, it could lead to shrinking discounts in these high-yielding funds.

We’re going to break down what’s happening today. Then I’m going to give you my favorite way to line yourself up for one-time events like this—an activist play, a takeover, a stock split—in your own portfolio.

Ackman/CP Was the Classic Activist “Unlock”

One of the most successful activist plays came when Bill Ackman installed veteran railroader Hunter Harrison at Canadian Pacific Railway—now Canadian Pacific Kansas City (CP). Five years later, the stock had more than doubled:

“Classic” Activist Move Ignited CP

But of course, not every activist move is this successful.… Read more

Today we’re going to talk about a closed-end fund (CEF) that not only helps us protect our portfolio as this market wobbles—it gives our income stream a boost, too.

The situation in the Middle East (and the market reaction to it) is behind our opportunity here. That and the fact that this fund has proven that its strategy is purpose-built for times like these.

But that said, this isn’t a fund we can “set and forget”: Timing matters (on both the buy and sell side)—and the current moment is particularly well suited to its portfolio and strategy.

The fund we’re going to discuss holds everyday stocks, like those in the S&P 500.… Read more

This private-credit mess we’ve been talking about lately has raised a question no one wants to ask: Is 2026 shaping up to be another 2008?

It’s easy to see why some investors may be thinking along those lines. And it’s something I’ve been giving a lot of thought to lately. But here’s the twist: There’s another year I think 2026 resembles a lot more than 2008.

That would be 2023.

If you remember, that year was a buying opportunity in stocks—and to pick up the closed-end fund (CEF) we’re going to discuss today. In fact, both 2008 and 2023 ultimately turned into strong setups for this 7.7%-paying fund.… Read more