These Mysterious Funds Crush the S&P 500 and Yield 6.5%

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Today I’m going to show you why some funds are killing the S&P 500—and how you can dramatically boost your odds of doing exactly the same thing.

One way not to do it is by investing in a dying asset class: traditional mutual funds. Since most mutual funds have underperformed the market, the number of funds out there has flat-lined, while the number of exchange-traded funds (ETFs), mutual funds’ low-cost cousins, keeps exploding. There are now about 2,000 ETFs on US exchanges, and they account for about a third of all US trading.

But as I wrote on February 21 (and have said many times since), I don’t recommend you join the ever-growing crowd of ETF fans, either.…
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Another day, another bearish article. It’s impossible nowadays to read the news without someone telling us that a crash is coming and we need to sell our stocks now!

If you’re seeing these same people urging you to liquidate your retirement accounts, you’re not alone. In fact, these stories seem to be everywhere in the mainstream financial press.

It’s all nonsense, written to grab your attention with fear-based headlines.

And if you don’t take a critical look at these stories (and here I mean going by raw numbers, not emotional appeals), you risk missing a terrific wealth-building opportunity—or worse.

Here’s the truth: behind the alarming headlines, there’s another, far more boring story: American companies are absolutely crushing it.…
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They call it the “silent wealth killer” for a reason: it takes the 2.2% yield you’d get from say, a 10-year Treasury note today and almost completely wipes it out.

And if this hidden threat perks up even a little bit (as it’s certain to do), it will push your average Joe (or Jane) into negative yields, no matter if they’re playing it “safe” in Treasuries or CDs or holding tight to the big names of the S&P 500.

I’m talking about inflation—and I’ll name 3 terrific investments that safeguard your income when it flares up in just a moment.

Before I do, let me just say that I know that inflation hasn’t been on anyone’s radar for years.…
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If you feel good because your S&P 500 index fund has taken off like a rocket in 2017, you may not want to read this article.

Because the S&P 500 is, in fact, not doing well this year—at least not compared to its peers.

Don’t believe me?

Take a look at the SPDR S&P 500 ETF’s (SPY) performance relative to a global stock fund like the Vanguard Total World Stock ETF (VT):

The World Races Ahead

Not only is a global stock portfolio crushing the S&P 500, but US equities are actually dragging the world’s returns down.

Notice how, in the chart above, the Vanguard FTSE All-World ex-US ETF (VEU) is up 14.6%, versus VT’s 11.1% return for 2017?…
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Index investing is popular among investors for one reason: most people don’t want to put the time and effort into finding investments selling at deep discounts.

The most popular way to get into index investing is through exchange-traded funds, which have replaced mutual funds as the hot investment vehicle of the day.

There’s just one problem: even the highest-yielding ETFs are only paying 4% dividends. This doesn’t mean you can’t get bigger yields from index investing, however; it just means you have to look further afield. Today I’m going to show you a way to jump into index investing and get a 7.4% income stream at the same time.…
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When the “Bond God” Jeffrey Gundlach speaks, yield hounds listen. And earlier this month, the preeminent income investor on the planet shared his favorite stock idea with a private audience.

I’ll share the specifics on his recommendation in a moment, including the exact “pair trade” that Gundlach likes. But first, let’s recap why we care what he says.

His Profitable Contrarian Calls

When Gundlach speaks, he often takes heat from his peers and the media because his calls run contrary to popular belief. But he’s usually right – and profitable:

  • In 2007, he warned investors to get out of subprime mortgages just before the credit markets melted down.


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Something wonderful happened last week: one of the municipal-bond CEFs I recommended to ContrarianOutlook.com readers more than two months ago raised its dividend.

The Pioneer Municipal High-Income Advantage Trust (MAV) hiked its payout by over 5%, giving the fund a 5.3% yield.

The stock price caught a lift on the news, bringing it to a 4.3% total return in a little more than two months, outperforming the municipal-bond fund benchmark iShares National Municipal Bond Total Return Fund (MUB) and the SPDR S&P 500 ETF (SPY).

Trouncing Munis and Stocks

The hike came after a series of dividend cuts dragged down the fund’s share price over the last few years:

Falling Yields and Prices

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Today I’m going to show you why the pundits have this market rally all wrong—and how a group of little-known investments called closed-end funds (CEFs) are the best way to cash in as stocks head higher from here.

Why do I say higher?

Because as I wrote back on March 30, this market is rising for the right reason: soaring earnings.

According to FactSet, first-quarter earnings are up 12.5% for S&P 500 companies that have announced so far, and earnings per share revisions are far more likely to skew upward than downward.

Simply put, American companies are making cash hand over fist.

But you wouldn’t guess that from the alarmist warnings out there. A couple months ago, CNBC reported that George Soros bet “big” against the stock market, and hedge fund legend Paul Tudor Jones warned that the stock market’s current valuation is “terrifying. …
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Imagine an investment that can double in value in 5 years while giving you a 12% income stream that has actually grown over time.

And what if I told you there are a lot of these investments out there? They’re just not well known.

The reason for that is that they’re closed-end funds (CEFs), an investment that isn’t as popular as mutual funds because most 401k plans don’t offer them. And they’re far less popular than exchange-traded funds because they’re just a little more complicated than something like the SPDR S&P 500 ETF (SPY).

ETFs like SPY are easy to set up and manage, which makes them cash cows for issuers like Blackrock, Vanguard and State Street, even though ETF fees are relatively low. That’s because these funds simply track a stock index. …
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Today I’m going to show you, hands-down, the easiest way to add rental real estate to your portfolio.

Don’t worry—you won’t have to leave your computer! Instead of hitting the streets to buy a four-plex or apartment building to rent out, we’re going to purchase a recession-proof real estate income stream straight from your online brokerage account.

And believe it or not, thanks to a current market anomaly, we can snag better deals online right now than we can in person. I’ll explain the details in a moment—including 2 stocks with yields that double what your average stock pays, and double-digit payout growth, too!

First, let me give you the lay of the residential real estate landscape.

A Bait-and-Switch Market

As I write, apartment vacancy rates across the US are tight—sitting at 6. …
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