Author Archive: Brett Owens

Utilities are on fire. As boring as they may be, stocks in this sector have been climbing higher and higher in 2016, thanks to one major trend: investors are desperate for yield, but they don’t want risk.

With many high yielding assets coming with high risk, investors are looking for safety, and utilities are seen as a safe alternative. As U.S. Treasuries hit historical lows and corporate bond yields slide further, utilities become a huge attraction.

It’s no wonder, then, that the Utilities Select Sector SPDR Fund (XLU) is up 20% over the past year, with virtually all of those gains coming in the last six months.… Read more

Contrary to popular belief, you don’t have to be a multi-millionaire to invest in private equity. In fact, if you have as little as $10 available in a brokerage account, you can do it.

This is especially important nowadays, because the stock market just isn’t cutting it anymore. Let’s face it: 2016 has not been that great for stocks. As we pass the halfway mark for the year, the S&P 500 is up 3%, meaning you’re looking at a 6% gain by the end of the year if the trend continues. For sure, that’s better than Treasuries, but it’s still not that great on a risk-adjusted basis.… Read more

Right now, the market only cares about one thing: Brexit. The market is volatile—which means now is a time to buy, buy and buy more as fears drive stocks too cheap.

But the simple fact is no one knows exactly how Brexit will impact the world’s various economies. For sure, there’s a consensus that Britain will take a hit—how big of a hit, though, is uncertain. And then there’s fear that political instability will impact Europe. But why should that cause the S&P 500 to lose 5% in just a few days?

Simply put: it shouldn’t.

Which is why I’m getting greedy as the world gets fearful.… Read more

Britain’s out – should you care? It depends on what’s in your portfolio today.

Here’s a five-point checklist to help you Brexit-proof your nest egg. There’s no shortage of noise floating around about the potential ramifications. Let’s separate the “first-level” headline worries from the second-level realities – and make sure your portfolio is set to thrive regardless of the nonsense coming out of Europe.

Reality #1: Interest Rates Here Aren’t Going Anywhere

Regular readers know I’ve been skeptical of the Fed’s “tough talk” about raising rates ever since it started. Perfectly good high paying issues have been pummeled by their empty threats of sustained hikes, providing contrary-minded income investors like us with excellent buying opportunities.… Read more

All weekend long I’ve heard from investors terrified of Brexit’s impact on their nest eggs. For the most part, they are in or near retirement—and now more than ever they are looking to shift more of their portfolio into fixed-income securities.

The problem? These are grim times for fixed-income investors. A one-year CD yields around 1.25%, and 10-year Treasuries aren’t much better, at 1.6%. That’s flirting with an all-time low—and leaves you with a loss after inflation.

But don’t worry. There are still good places to hunt for yield in the fixed-income space. In a moment, I’ll give you two options that together pay out a tidy 6.0%, so a $250,000 investment in each one would bring in a nice $30,000 income stream.… Read more