Six summers ago, Donald Trump lamented privately to Republican donors that he expected Jay Powell to be a “cheap money” Fed chair. To the President’s chagrin, Powell had recently raised interest rates. Thus, making money more expensive.

Most real estate guys like Trump are allergic to high rates. Back in 2018 they were certainly no bueno for his growth-focused agenda. The President told Fox Business the Fed was his “biggest threat.”

He even admitted to the Wall Street Journal he “maybe” regretted appointing Powell. Appointer’s remorse! Then came Trump’s biggest zinger of them all:

“The Fed is like a powerful golfer who can’t score because he has no touch—he can’t putt!”

Trump’s win cements what we’ve been saying for months: You can forget about a hard landing or a soft landing—This economy is headed for no landing at all.

In the last few weeks, I’ve started to see the mainstream media pick up on our thinking here. Nice to see they’re finally catching up!

We’ve got two “refined” trades on Trump 2.0 below (ranked in order of appeal). They’re both growing their dividends, and they’ve both been unfairly left behind in this year’s rally.

Before we get to them, let’s take a look at the post-election state of play so we can get a grip on exactly how we’re going to move ahead here.… Read more

If you have a wealth manager working for you, I have one simple piece of advice: Seriously consider moving on from them (or managing your investments yourself) if they recommend following the “60/40” rule.

It simply says that most people should invest 60% of their assets in stocks and 40% in government bonds for retirement.

In a moment, we’ll talk about one fund we’d have completely missed out on by following 60/40 ourselves—or by signing on with a wealth manager who does so. (And not to worry, this one is still available for us to tap into for a solid 5.5% dividend, with upside.)… Read more

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

Immediately after President-Elect Donald Trump won his second term last week, the US dollar surged, while US Treasuries fell:

Election Sends Dollar Up, Treasuries Down in Early Trading

Both moves are opposite sides of the same coin: Investors believe Trump’s policies will be inflationary. The theory suggests this would happen for a couple of reasons:

1. The US government will spend more, and interest rates will rise higher than rates elsewhere in the world in response. That will attract foreign capital to America while making it less attractive for capital to leave the US.
2. All of that extra capital in America will boost economic activity and demand for the dollar.

As we income investors roll into Trump 2.0, it’s time for us to “flip the script” on the trades that have worked for us over the past two years. Things have the potential to get wild. Fortunes made; retirements lost.

Let’s re-calibrate to make sure we own the stocks that will benefit most from the Trump 2.0 presidency.

Yes, I emphasized equities intentionally. 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, the fixed income trade is a bit tired.… Read more

Look, I know what a pain it can be to track your dividends.

ChatGPT? It’s no help. When I asked if it could give me a hand, its top suggestion was that I use a spreadsheet!

I mean, I guess the offer to help set up formulas is appreciated. But this is still a pain to set up—with AI assistance or not.

Sure, your brokerage account might have a built-in dividend tracker, but it’s almost certainly only useful for any investments you hold with that particular broker.

But what if you hold investments in more than one account, or with more than one brokerage (as many of us do)?… Read more

I can’t tell you how many times I’ve mentioned closed-end funds (CEFs) to investors and been met with blank stares in return.

It’s too bad more people don’t know about these powerful income plays because …

1. CEFs let you diversify, not only within stocks but beyond them. Among the 500 or so CEFs out there are funds that own stocks, corporate bonds, municipal bonds, real estate investment trusts (REITs) and more.
2. CEFs often trade at discount to net asset value (NAV, or the value of their portfolios). This means we can buy shares of high-quality firms like Apple (AAPL) for less than market value.

It’s a party on Wall Street! While the suits fawn over the hot “Trump trade” stocks, we dividend investors are going to dumpster dive.

Hey, we have no shame. We’re talking about yields from 7.8% to 13.4%, paid monthly!

Why the bargains? Bonds have been bloodied since the Federal Reserve cut rates.

Wait, what? Let’s remember the Fed guides short-term rates. Long-term rates , on the other hand, march to the beat of their own drum:

20- and 30-Year Treasuries Above 4.5% Again

We could dip into bond exchange-traded funds (ETFs)—they’ll have the same tailwind at their back. But I prefer CEFs over bland ETFs for three very simple reasons:

1. They yield more.

At times like these, with the economic outlook uncertain and volatility likely, we want to be certain of one thing: We’re still in stocks (and stock-focused funds)! But of course, we want to make sure we’re tempering our risk, as well.

Because one thing we can be sure of is that any volatility, no matter if it’s tied to an election or any other outside event, will pass. The last thing we want is to be out of the market when it does. (And of course, we want to keep our dividends rolling in, especially in volatile times.)

That brings me to what I want to discuss today—two things, actually.… Read more