My “Preferred” Path Through the Tariff Minefield (Yields Up to 10.5%)

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My “Preferred” Path Through the Tariff Minefield (Yields Up to 10.5%)

President Trump has been talking about tariffs since 1989, when he advocated for a 15% to 20% tax on imports from Japan because of unfair trade practices. This is how he describes Canada, China, Mexico and Europe today.

Trump has already imposed a 10% levy on Chinese imports. Meanwhile, Mexico and Canada have secured a 30-day reprieve from planned 25% tariffs, contingent upon their commitments to bolster border security and curb the flow of illicit drugs into the United States.

More tariffs are coming. Trump says he is willing to take the short-term pain for potential benefits.

We contrarians don’t have to grit our teeth and suffer with stocks that are suddenly tariff losers.… Read more

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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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Time to Buy the Bottom in These 8%+ Yields?

As contrarian income seekers we buy when yields are high and prices are low. Today, we’re going to explore a three-pack of dividend funds that pays 8.5%.

This is “retire in style” income. We put a million dollars in these plays and get paid $85,000 per year. Plus, we keep our principal intact.

And wait, there’s more. The cheapest of these three funds is currently trading for just 89 cents on the dollar. Yes, that’s an 11% discount to the value of its underlying holdings.

Too good to be true? Or bottom-fishing bargain? Let’s explore my preferred dividend strategy and these three dividend machines.… Read more

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