Have We Hit Bottom? Here’s My Take (and 2 Funds Yielding 9%+)

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The Contrary Investing Report > NYSE:SPXX

These days, we’re hearing a lot of pundits pontificating about which way the markets will go. But let me suggest something none of them are talking about:

What if stocks trade more or less flat for the next while?

It’s a contrarian call, to be sure, but there’s reason to think markets may be, well, kind of quiet in the coming days or weeks. And there’s a way we can squeeze a big 9.2% income stream out of just that kind of market.

The Flat-Market Theory

I know what you’re thinking: how on earth could stocks just hold their breath while America is on lockdown, possibly for a long time to come?… Read more

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There’s no doubt portfolios everywhere are whipsawing due to the selloff.

But I’ve got good news for you: going by the historical record, this pullback will likely be shorter than most people think, and if you buy now—particularly if you target a select group of high-yield stocks and closed-end funds (CEFs)—you’ll outperform your fearful friends when the bounce-back comes.

Meantime, you’ll open up a nice new income stream to meet your cash-flow needs today. It literally is the best of both worlds!

Let’s dive into what the facts say about this bear market’s duration. Then I’ll name two funds worthy of your attention now.… Read more

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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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Volatility is back! With the market whipsawing again, you’re likely seeing more red in your portfolio these days.

At times like this, you might be tempted to give in to emotion and sell. That’s understandable—self-preservation is, after all, our most powerful instinct.

But keep your nerve. Because now is the time for contrarians like us to get greedy for yield—and upside.

Here’s why: American companies’ earnings are strong, their revenues are rising, and there are no indications of a recession anytime soon.

I’ll go through these points one by one, because it’s important to see how the data disagrees with the panicky noise the media publishes these days.… Read more

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Today we’re going to dive into a question subscribers to our CEF Insider service often ask: what happens to a closed-end fund’s dividend when stocks take a tumble?

The answer is coming up shortly (and if you’re at all worried about this levitating market suddenly snapping back, you’re going to like what I have to show you).

Then I’m going to reveal one 6.6%-paying fund whose management is dialed in to market swings and know how to protect their investors’ income when things get rough.

How do I know? Because they did just that in the 2008-09 crisis.

More on that shortly.… Read more

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Imagine if you could find a single signal that would warn you when a recession is on the horizon.

Well, one such indicator does exist—and it’s telling us that storm clouds are indeed building. That means it’s time for contrarians like us to get greedy for income (and gains)!

I’ll explain this seeming contradiction—and name a 6.7%-yielding fund that should be on your list—in a second. First, here’s more on this reliable “recession indicator.”

A Three-Decade History of Being Right

Campbell Harvey, an economist at Duke University, knows all about this recession signal: he was the first person to run across it, over 30 years ago.… Read more

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If you’re like, well, everybody, you’ve been mulling these three questions lately:

Is this “tariff tantrum” the end of the bull market? Is it time to sell? Or buy more?

I’ll deal with the first question in a second. Meantime, let’s start with the second one: no, it is not time to sell. Because after all, we need to stay invested to keep our dividend checks rolling in.

What about buying?

Yes, it’s still a great time to buy—especially in one corner of the market where 6%+ dividends are everywhere: closed-end funds (CEFs).

In a moment, I’ll reveal a CEF whose yield recently soared to nearly 7%!… Read more

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The headlines say it all: the economy is slowing down, right?

And with stocks soaring—up 11% year to date—we must be headed for a correction.

Both statements would be off the mark.

Because the economic numbers the government is putting out (and the press is repeating without question) are flawed. I’ll show you how in a moment.

First, let’s cut straight to the upshot: you’ve still got a great shot at buying high-yield closed-end funds (CEFs) now, particularly those that hold America’s best stocks. I’ll name two choices yielding 7.3%+ at the end of this article.

First, let’s zero in on the many economic tailwinds (some in disguise), that are driving this still-solid opportunity.… Read more

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Today I’m going to reveal a powerful secret that could boost your dividend income 4X.

I’m talking about a massive 7.5% income stream here (or nearly 4X the yield on the average S&P 500 stock)—and your capital will grow nicely while you pocket your dividend cash, too.

Solid payouts like that put financial independence within reach, because with just $500K invested, a 7.5% yield would hand you $3,125 a month in income. That’s higher than the $2,600 the average American makes.

And unlike that average American, you won’t have to troop off to work every morning to get your “paycheck.” Plus you won’t have to sell a single stock in retirement to pull this off.… Read more

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Monday’s major jump in stocks is the beginning of a trend that will catch a lot of investors by surprise: fundamental strength thanks to trade war fears abating.

We aren’t out of the woods yet, as Tuesday showed us. While the market cheered the tentative cease-fire between Xi and Trump on Monday, the lack of details and confusion hit the market on Tuesday.

And that’s a good thing, because it’s set up investors for an opportunity to buy equities cheap before the relief rally around the corner.

Trade Ceasefire Opens Buy Window …

The way I see it, the trade-war ceasefire is likely the beginning of a deal coming down the pipe in the next three months.… Read more

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