This Bizarre Trend Delivered a 31.25% Gain in 2019 (2020 Could Be Even Better)

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The Contrary Investing Report > NYSE:GAB

One of the weirdest trends over the last year has gone largely unreported. Despite stocks surging 30% in a year, investors are still selling stocks more than they’re buying.

It’s hard to get your head around this fact, but the data says it’s true. According to data from Refinitiv Lipper, investors actually withdrew $192.3 billion from mutual funds and ETFs—the largest amount of outflows on record for a single year.

Stocks Soar—and Investors Sell?

The concept here is a little complicated, but it’s crucial to understand. An ETF or mutual fund pools together cash from its investors, which it then uses to buy stocks, bonds or whatever its mandate says it needs to buy.… Read more

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Today, the 10-year Treasury pays just 2.4%. Put a million bucks in T-Bills and you’re banking $24,000 per year. Barely above poverty levels!

Hence the appeal of closed-end funds (CEFs), which often pay 8% or better. That’s the difference between a paltry minimum-wage income of $24,000 on a million saved or a respectable $80,000 annually.

And if you’re smart about your CEF purchases, you can even buy these funds at discounts and snare some price upside to boot!

The market’s fast run-up since January 1 has made cheap CEFs just a bit harder to find. And some CEFs have become so pricey that, if you hold them, you should consider selling before their premiums fall to earth.… Read more

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It’s a question that’s absolutely critical when judging a closed-end fund: how safe is the dividend?

This is particularly crucial when you consider the huge yields the average CEF offers compared to their ETF cousins. For the 2,918 ETFs available to US investors, the average payout is 1.9%, partly because 735 of these funds pay nothing at all. But even without those, the average ETF yield is still a pathetic 2.5%.

CEFs? For the over 450 covered by my CEF Insider service, the average yield is 7.3%, and only nine yield less than 1%. In fact, over 85% of CEFs yield more than 4%, while just 9% of ETFs do!… Read more

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Let’s say you’re looking to retire and want to bring in the average American salary in your golden years.

It’s a good goal—and more than enough cash for many retirees, especially if you live outside places like, say, San Francisco, where the average one-bedroom apartment rents for $3,300 a month (!)

So how much are we talking about here?

As of March 2017, the average US worker took home $896.60, according to the Bureau of Labor Statistics. Assuming 50 working weeks a year, that’s $44,830.

Okay, so we need to get $44,830 in pre-tax passive income. Where are we going to get it?

Most people look to three options: bonds, stocks and real estate. And sadly, that’s where many lose their shot at our $45k income stream. …
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If you’re interested in getting into the S&P 500, it seems like a good time to do so. Earnings are rising, GDP growth is strong, the unemployment rate is falling, and wages are heading upward.

There’s just one problem: as I wrote a few months ago, the S&P 500 is a lousy bet.

There are a couple reasons why, the biggest being the income problem. If you buy into the SPDR S&P 500 ETF (SPY) or the Vanguard 500 Index Fund (VOO), you’re going to get a dividend yield of less than 2%. So buy $500,000 worth of those funds and get a whopping $791 monthly in cash dividends.

That’s just not good enough.

Today I want to show you 3 funds that yield …
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