Howard Marks, the billionaire founder and chairman of Oaktree Capital, sends out his “Memos” several times a year. His December issue, titled Sea Change, offers food for thought about successful investment strategies to use in the new year. Let’s take a look, and see how we can earn some nice cash returns next year with […]
Interest Rates
How to Weather These Choppy Markets
The stock market has proven to be very resilient in recent months. Even as Federal Reserve officials talk about the need for interest rates to be higher than expected for longer than anticipated, the markets have managed to hang on to the idea that if the pace of rate hikes slows, the eventual destination does […]
This “Thanksgiving Surprise” Gave Us the Best Stock to Buy Now
In the current environment, with interest rates rising and inflation still threatening the U.S. economy, it is hard to find many who are bullish on real estate. Momentum is very negative, and that will not change overnight. However, when everyone hates a sector, as currently seems to be the case with real estate-related securities, it […]
Why Bonds Will Be Among the Biggest Winners of 2023
Along with a bear market for stocks, 2022 has, according to Morningstar, been the worst year ever for the bond market. Bond values have fallen up to 30% this year, putting a bigger dent in many retirement accounts that hold bond ETFs. Fortunately, in the current, higher interest rate world, you can invest safely in […]
Big Banks Just Gave You a 10%+ Yield Opportunity
A recent article on mortgage-backed securities (MBS) had me going, “huh?” The story covers MBSs being very popular when mortgage rates were less than 3%, but now with rates over 7%, large, institutional buyers are staying away. That’s one reason why mortgage rates are so high, despite MBSs in theory being more profitable today. That’s […]
Rates are Still Going to Rise – Here’s How to Prepare
If you think that last week’s inflation numbers would cause the Fed to pivot, I have a bridge conveniently located in lower Manhattan that offers easy access to Brooklyn available for immediate sale. You could make millions charging other people big bucks to use your new bridge and recoup your costs in no time. Yes, […]
Your Cash Could Be Earning You More Income
With interest rates rising, your cash holdings could now earn you some interest income. Again, they could—but they may not be doing so. Many financial institutions are not passing along higher interest to customers holding cash. You should check to see how much your money earns, and if it’s a pittance, look at some alternatives. […]
The Two Best “Stock-Bond Hybrids” for Rising Interest Rates
Preferred stock shares feature a mix of common stock and debt security traits. In other words, they’re the best of the stock and bond worlds, and offer excellent, secure yields… if you understand how they work. So today, let’s dig into that – and see the two best preferred stocks to buy today… Preferred stocks […]
The 2 Best Stocks for Even Higher Interest Rates
After the inflation numbers came out last Tuesday, the Dow Jones Industrial Average (DJIA) futures dropped by 700 points in minutes—from above 200 points to the positive to more than 500 points down. The inflation rate of 8.3% was higher than the expected 8.1%. As one TV expert noted: “The future is messy.” Truer words […]
How to Invest for Rising Interest Rates
A few weeks ago, Federal Reserve Chairman Jerome Powell threw the stock markets under the bus with his comments about making stopping inflation the Fed’s top priority. If the central bank follows through, the result will have interest rates moving higher and staying higher for longer than stock market investors were expecting. That sent stocks […]