Invest Like VCs and Earn 13.5% Yields … On Average!

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Buying a business development company (BDCs) is kinda, sorta like investing like a venture capitalist (VC).

Minus the arrogance. And the lack of yields!

I was 26 when I realized that VCs were just regular guys and gals. Well, let’s be honest—mostly guys. They didn’t necessarily know anything special. But VCs play the part, sitting in their Steelcase chairs and short sleeved polo shirts while it’s 60 degrees out here in Northern California.

BDCs, on the other hand, are investments for the people. Plus, they pay—up to 15% in dividends!

Here’s a quick primer. BDCs lend to small and midsized businesses that the big banks either won’t touch.… Read more

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Mr. and Ms. Market are manic. Always have been, always will be. My fellow contrarian, they reminded us of this fact yet again.

Fortunately we were zigging while the broader crowd was zagging.

The herd’s “FOMO panic” last week pushed many of our stocks higher. Vanilla investors covered their ill-timed short positions and scrambled to buy bargains. Like the dividend deals we bought in October!

Did you miss out? Have cash suddenly burning a hole in your pocket? If so, no worries, a few select dividend deals remain.

I’m talking about yields up to 12.3% and discounts up to—get this—46%.… Read more

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Please, take that finger off the Sell button.

This is the best buying opportunity since the bank failure panic in March. Vanilla investors are giving away perfectly good dividends.

Let’s grab the bargains.

Why the panic? Well, the 10-year Treasury yield burst through the 4.3% ceiling I’ve been pointing to. This is why stocks sank. All lending and refinancing are based on the 10-year, so a higher rate suggests a slower economy ahead and lower corporate profits.

When the 10-year moonshots like it has over the past year, it breaks financial markets. Bonds drop because they trade opposite rates. Real estate investment trusts (REITs), meanwhile, get hammered for two reasons.… Read more

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Get your dip-buying lists ready, because it’s almost time to pounce.

Just recently, I explained to investors that, as a contrarian, we only want to fully dive into the market when we have a clear edge—the kind of edge you get when Wall Street has fully capitulated:

“We only want to fully invest when the regular investor has thrown in the towel. And there are plenty of indicators that can tell us exactly when our time has come. Consider, for example, the closely watched CNN Fear/Greed Index, which sits at 26 as I write.”

That was just a week ago.… Read more

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If you want to live off dividends in retirement, you can’t depend on “blue-chip stocks.” They simply haven’t paid enough yield for years:

Even High-Yield Savings Accounts Start to Look Good at These Levels

Source: Multpl.com

The S&P 500’s yield recently hit 1.7%. Think about it in “retirement spending” terms. If you took an entire million-dollar nest egg and put it in the S&P 500, you’d be looking at just $17,000 in dividend income per year. If you have even less to invest, like $500,000, that’s just $8,500 a year—several thousands of dollars below the U.S. Department of Health & Human Services’ poverty guideline of $12,760!… Read more

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