So for those who know about LICs, they are valued based on the NTA per share, and then the stock price is either trading at a premium or a discount.
So if you're investing in LICs, you want to buy at a discount to NTA. In a market such as currently which would be argued as expensive, this makes the NTA of these LICs go up because their share holdings have more value right?
So if the stock price of these LICs hasn't gone up with the rest of the market hypothetically, and they were now trading at a discount to NTA simply because of the rise of their stockholdings, could the current NTA be sort of a trap due to the expensive market in general? I mean in an overvalued market, their NTA would rise and could surpass their stock price, so it could give an illusion of being a discount to NTA, when the NTA is actually just overvalued by the market.
Am I accurate in this assessment? Seems to me that buying at a discount has the condition of buying when the market is not overvalued as it is currently.