Double-Digit Bond Yields? Let Me “Float” a Few Ideas.

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Double-Digit Bond Yields? Let Me “Float” a Few Ideas.

Fifteen months ago, we contrarians started the bond bandwagon. It’s hard to believe now, but back then the financial suits hated fixed income. We faded their fears, bought bonds and benefited.

Now, however, I’m cautious on bonds. The 10-year Treasury yield has been on a tear since Jay Powell first cut the Fed Funds Rate.

Bond Vigilantes Scoff at Powell’s Rate Cuts

You can’t make this stuff up. On September 18, Powell cut rates by 50 basis points. However, this was only the “short end” of the yield curve. The 10-year yield meanwhile (the “long end”) popped from 3.7% to nearly 4.5% in a matter of weeks!… Read more

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Bank $3,333 in Monthly Dividends with Rising Rates

The Fed funds rate is 0.25% higher now than it was this time last week. What does this mean for our income investments – especially our monthly dividend payers?

We’ll explore in a minute. First, let’s allow ourselves a moment to appreciate the attractiveness of meaningful monthly distributions.

Our bills arrive every 30 days. But most stocks only pay their dividends every 90. So why don’t we bridge the gap and line up our income with our expenses?

Electricity bill? No problem – got an emerging market bond distribution to cover that.

Cable? No hurry to cut the cord (and risk live sports) when we have a REIT stock that covers this month’s bill.…
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The 3 Best “Rising Rate Plays” Today for Dividends and Upside

After a decade in the basement, interest rates are finally starting to move meaningfully higher. Let’s discuss the best stocks and bonds to buy with this backdrop.

If it feels like we had forever to prepare our portfolios for this moment – well, we did. This interest rate run has largely taken place on a treadmill. We’re almost two-and-a-half years into the Fed’s current rate hike cycle, and the Fed Funds rate is up a modest 1.25%.

Meanwhile the 10-year Treasury rate hadn’t really moved until recently. At all. The benchmark long bond now pays 2.86%:

Rates Slowly Grind Higher

If you believe your portfolio is behind the rate hike curve, it’s not by much.…
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