U.S. investors appeared more than happy to turn the calendar to June this week. After the Nasdaq Composite reached correction territory on Monday, the broader stock market averages rebounded more than 2% across the board on Tuesday.

Even with 5% tariff on Mexican imports set to go in effect on June 10, the initial recovery sparked a multi-day rally. The rebound was ignited by the realization that the FOMC would be more likely to step in and lower interest rates, to better reflect market pricing in the Treasury yield curve.

The May jobs report on Friday was another case where “bad news is good for stocks”.… Read more

I told you GameStop’s (GME) dividend was toast. Did you sell, or better yet, short the stock?

Just one quarter ago, we chatted about the inevitability of this paper payout ending in tears:

Brick and mortar video game retailer GameStop (GME) is a throwback to yesteryear. It’s survived the rise of digital distribution for video games thus far because Microsoft, Sony and Nintendo haven’t fully digitalized their sales. (In other words, they still sell physical boxes that are bought at stores like GameStop.)

 

But this sales model is ultimately toast and GameStop doesn’t have a convincing second act.

The most worrying recession indicator I know of is now shining bright red.

And now is the time to buy stocks.

I know that sounds like a blatant contradiction. Let me explain—then I’ll reveal a closed-end fund [CEF] yielding an amazing 9% and set to skyrocket in the coming 12 months.

Recession Signal Switches On

The recession indicator I’m talking about is called the “inverted yield curve.”

It sounds like technical jargon, but the idea here is straightforward. The term refers to the different rates bondholders get on different US Treasury issues; this has big implications for the stock market.… Read more

In a word… no.

Interest rates are plummeting, which is usually “prime time” for mREITs like Annaly Capital (NLY). The “original mortgage REIT” has traditionally held fixed-rate securities, which rise in price as rates decline.

Annaly investors remember the “roaring ‘00s” fondly. From 2000 through 2012, mortgage rates ticked down, down, down while the stock climbed higher and higher:

The Roaring ‘00s (and Beyond) for Annaly Investors

While Annaly delivered total returns of 609%, its yield bounced between a handsome 10% and a gaudy 15%. What a run!

Of course, even the best party has its lulls. This happened when then-Fed chair Alan Greenspan began raising rates in the summer of 2004.… Read more

I know I don’t have to tell you it’s tough (and very frustrating) trying to get any kind of income stream from your savings these days.

The average S&P 500 stock yields just 1.9%. That’s not even enough to cover inflation!

Treasuries? The 10-year note yields an almost equally pathetic 2.3%.

But there are still safe 7%+ dividends to be had—even in the “income desert” we’re living in now. I’ll show you three funds yielding up to 8.5% (more than 4 times the typical S&P 500 yield) in a second.

Dividends like those can let you clock out on a nest egg that’s far smaller than advisers say you need.… Read more

There’s really just one way to cushion your portfolio from this trade war.

It’s one of the oldest pieces of advice there is:

Diversify.

I know. You’ve heard that one tons of times before, right? Well, there’s a twist.

Because I’m not going to just tell you that you need to spread your money out among stocks and bonds, say. Or that you need to add more healthcare or tech stocks or (heaven forbid) low-yielding Treasury notes.

No way. I’m talking about diversifying between countries.

Because the truth is, most Americans have too little exposure to the rest of the world in their portfolios.… Read more

U.S. markets were closed on Monday for the Memorial Day holiday, but the selling pressure on stocks did not take a break this week.

There was little progress in trade talks between the U.S. and China. In fact, President Trump declared trade war in a new theater on Thursday, proposing a 5% tariff on all goods imported from Mexico, beginning June 10.

This continued global economic uncertainty sent investors looking for safety in bonds. Short-term rates moved so low on Wednesday that the yield on 3-month bills T-bills was 14 basis points below 10-year notes, which is a level of inversion that hasn’t been seen since the Financial Crisis.… Read more

I love “secret dividends.” They’re one of the few safe ways to collect yields up to 11.9% in a 1.9% world!

They’re also a great way to protect your portfolio against big market pullbacks, too. If you find yourself wincing every time you check your stocks, perhaps some secret dividends would help steady the ship.

“I’m 11 years older now. Brett, I just can’t have a repeat of 2008,” my new subscribers often share.

“Now tell me which of these dividends will survive a bear market like that. I want to buy the safest yields,” they continue.

Fortunately I’m no stranger to dividends that thrive in bear markets.… Read more

What if I told you I’d found a way to protect your portfolio from this twitchy market without giving up big gains (and income)?

My guess is you’d be interested—if a little skeptical.

I get that. A skeptic is a good thing to be, in investing and pretty much everything else.

So let me tell you right away that I’m talking about one of the most unsexy investments you can think of—but also one poised for some very nice gains as volatility drives scared investors to look beyond stocks.

I’m talking about municipal bonds, debts issued by state and local governments to fund badly needed infrastructure projects.… Read more

Where’s the market going from here? Well, if you own these seven “never go down” dividend payers, you probably don’t care.

My readers are often asking for safe income ideas. For stocks that pay dividends and never drop in price. It’s a very difficult task, but not quite impossible.

For most long-term investors who want big dividends–I’m talking 6%, 7% and even 8%+ current yields–I recommend a combination of a contrarian and “No Withdrawal” approach. This consists of buying safe dividend-paying bonds and funds when they are out of favor and holding them through any market turbulence.

Big dividends are the rubber duckies of the investing world.… Read more