10 Steady Tax-Equivalent Yields Up to 10%

Our Archive

Search completed

Municipal bonds are off to a slow start in 2018 – which is usually a bullish sign for these tax-free payers.

We last “pounded the table” on munis in December 2016. They were coming off their worst month since the Great Recession, and we discussed their tendency to rally when they are hated:

“It’s impossible to call a top in yields (or bottom in munis) without the benefit of hindsight. But we contrarians make our money buying when nobody else wants to – and the last time munis were this hated, they returned 30-38% over the next 12 months.”

Turns out that was the bottom in munis.…
Read more

Read More

If you take the mainstream financial media at face value, you might be under the impression that all high yield bonds are in big trouble with interest rates on the move.

Wrong.

The best bond portfolios haven’t actually budged since the recent market insanity began. Take, for example, our favorite PIMCO play. Its net asset value (NAV, the actual market value of its holdings) held steady while the stock market was dropping sharply:

What Crash? This NAV is Steady

The fund’s price, meanwhile, eased down 2.2% from peak to trough. But we shouldn’t confuse price with value – we should focus on the latter, which is a more accurate measure for investing profits.…
Read more

Read More

As income investors react to the new tax plan, it’s a good bet that some are overreacting to certain aspects of it. They always do.

There’s confusion between high yielding fixed income, and pure junk. There’s also a flood of tax-advantaged paper about to hit the market, creating bargains for smart buyers.

The result? Yields up to 10%, with some price upside to boot!

Bargain #1: “Smart” High-Yield Bond Funds for 7.5%+

If you hold high-yield (often called junk) bonds, you may have noticed they’ve sold off as the Republicans’ tax talk became serious. They’ve taken down other assets, too – some for good reason, some not.…
Read more

Read More

You’re not the only one worried about high stock prices.

The lurking (and perhaps overdue) bear has other income investors worried, too. So let’s talk about the best buys for those of you worried about a stock market pullback of 10%, or 15%, or more.

We’ll start with some stalwarts from our Contrarian Income Report portfolio that weathered the last storm. Ironically (and probably fittingly) it happened off the bat – we launched our service, and the S&P 500 promptly dropped 10%!

No problem for us, though. In fact, subscribers who focused on their own holdings rather than the financial news may have missed the broader carnage altogether.…
Read more

Read More

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.

Sign up for our Newsletter

Categories