Friday, February 5, 2010

EAD has nothing to do with Airbus

During today's panic I added to my position in Evergreen Income Advantage Fund (EAD). It was down almost 5%, in line with European stocks. Of course, EAD has almost nothing to do with Europe. It invests in bonds issued mostly by US companies. But ticker symbol EAD on AMEX is the same as ticker on various European exchanges, where it refers to EADS, airspace conglomerate, parent of Airbus.

Money is made in the gap between perception and reality. EAD today is a very good illustration.

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