Investors are warned against selling out of fear, which could result in missing out on significant returns, especially when investing for income like in closed-end funds (CEFs) yielding 8% or more. A recent report from Morningstar revealed that the average US investor missed out on $2,300 for every $10,000 invested over the last decade due to poor timing and decreased income streams. Despite recent market volatility and fears of a bubble, stocks and stock-focused CEFs have potential for long-term gains. US households have a healthy debt-to-income ratio, and US companies are experiencing strong profit growth.

One of the consequences of fear-driven selling is the opportunity to buy high-quality assets at a discount, such as the Liberty All-Star Growth Fund (ASG) with an 8.9% payout and trading at a 9.9% discount to NAV. Conservative CEF investors have created large discounts on funds like ASG, providing a buying opportunity. Additionally, AI stocks with high yields of 8.2% are currently undervalued, presenting a chance for investors to capitalize on these bargains before missing out on future dividend payouts.

Read more at Nasdaq: Why Your Friends Are Losing $2,300 on Every $10K They Invest in Stocks