Forget the Fed: These 5 Funds LOVE Rising Rates (and Pay 7%)

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A lot more investors have been emailing me lately, fearful of a market downturn. This tells me one thing: today’s market is a scared market.

But you don’t need to be scared. In fact, thanks to overhyped investor fears, you can easily lock in 7% dividends and prepare yourself for a downturn with less risk than you’d get buying stocks directly.

The key? The 5 unloved (for now) funds I’ll show you in a moment. First, though, you might be wondering why I say these funds are less risky than individual stocks.

For one, each of these 5 hold hundreds of assets, spreading your cash out in a way that a basket of a few stocks can’t.… Read more

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Readers often ask me how to build a portfolio that holds its own in down times but hands them more income than the measly 2.6% long-term US Treasuries pay.

So today I’ll show you how to do that. With the 4 bargain-priced closed-end funds (CEFs) I’ll show you below, which also boast strong track records and high income streams, you can keep the dividends flowing, regardless of the market’s tantrums.

An added plus? Your nest egg will be spread across asset classes, giving you extra protection.

Buy No. 1: A Buffett-Friendly CEF With Big Upside

With a long-term average total return of around 8.5% per year, US stocks need to be at the heart of any income portfolio.… Read more

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You’ve no doubt seen tons of articles splashed across the Web (over)hyping the hottest investing trends to jump on now. But which promising technologies can we actually tap for payouts and dividends (preferably today)?

The “mainstream” list is endless: cryptocurrencies, marijuana stocks—even gene editing (where the white coats actually alter DNA to wipe out diseases like cystic fibrosis).

I hope you’re not taking the bait, because gambling on shaky themes like these can put a huge dent in your nest egg. Check out the stomach-churning ride pot stock Aurora Cannabis (ACBFF) has been on this year:

Aurora’s Bad Trip

That nasty fall even includes a 19% gain last week after Constellation Brands (STZ) invested $5 billion in Canopy Growth (CGC), the biggest marijuana stock by market cap.… Read more

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If you’ve read the headlines about tech’s woeful slump in the past couple weeks, you might think stocks are out of favor.

You’d be wrong—and this chart proves it:

Forget the Headlines: Stocks Are Rolling

After February’s gut-wrenching plunge, the S&P 500 has more than recovered and is up 6.2% year to date. If this trend continues, we’re looking at a 12.4% return on the year.

But look at the orange line above—that’s the tech-benchmark Invesco QQQ Trust (QQQ), which is up 13.2% year to date, even after this latest correction in tech. That adds up to a monstrous 26.4% return for 2018 if that trend continues.…
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If I’ve heard it once I’ve heard it a thousand times: if you want big dividends, you can forget about getting big price upside, too.

Clearly, whoever came up with this “wisdom” is clueless about closed-end funds, where hefty 7%+ yields are common. Fast double-digit gains, too—especially if you follow the one true CEF profit indicator I’ll show you now.

It’s called the discount to net asset value (NAV), and you can find it on any online fund screener. In plain English, it’s the difference between a CEF’s market price and its “true” value—or what its underlying assets are worth.

Sounds simple, right?…
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I’m going to get straight to brass tacks. Let’s discuss 2 closed-end funds with up to 18% upside in the next 12 months, plus yields up to 5.8%. Both are leading a blockbuster trend almost everyone has missed.

I say “almost” because if you’re a canny contrarian (and if you’re reading this I’m betting you are), you probably know what I’m going to say.

I’m talking about the quiet rebound in actively managed funds (that is, funds with real humans in charge), including CEFs.

So far this year, more than half of active managers are beating their benchmarks. And when human stock pickers take the lead, they keep it, like they did from 2001 to 2011.…
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If you’ve been reading my CEF Insider service or my weekly articles on Contrarian Outlook, you know I don’t go near a closed-end fund unless it hands us two things:

  1. A fat, sustainable dividend
  2. A big discount to net asset value (NAV, or the value of its underlying assets)

Today I’m going to show you 4 CEFs that give us these two things in spades, with safe dividend yields up to 8.2% and ridiculous discounts either at or near double digits! (If you’re unfamiliar with CEFs, click here for a quick overview of these exciting high-yield investments).

So if you’re looking to bag solid dividends up to 8.2% at a nice discount (and who isn’t?), read on!…
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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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