The Invesco Value Municipal Income Trust (ticker: IIM) has had a big sell off recently along with treasuries and other bonds.
I think this closed ended fund is now oversold.
IIM is trading at a discount of 11% to it’s Net Asset Value. That is like paying 89 cents for a 1 dollar bill. Buying the fund will also net you a 5.21% tax free yield. Because this is a muni fund you do not have to pay federal income taxes on the yield. You will be hard pressed to find this type of deal anywhere.
The fund will likely bounce off the $14 level.
Action: buy IIM, sell if the fund closes below $13.90.
Buying the fund allows us to collect a great dividend with limited down side. Please use a 18% trailing stop as well as sell if it drops below $13.90.by