If you’re hunting for income, your job just got a lot tougher, and it’s all the Federal Reserve’s fault! Fed Chair Jerome Powell’s recent cave-in on rate hikes means the central bank is out of action for the rest of 2019—and its next move could even be a cut.

Sure, this has been great for stock prices, which surged 8% since the new year. But it’s crushed dividend yields, leaving you with far fewer buys to get the 6%+ yields you need to retire on dividends alone.

Look at how this past month’s price gain has compressed the average S&P 500 stock’s yield from a pathetic 2.1% to a very pathetic 1.9%!… Read more

If you’re like most people, you’re wondering one thing right now: can stocks keep soaring following December’s nosedive—even after spiking 8% in January?

The answer? Absolutely.

To get at why I’m so sure, we’ll first go a couple steps further than headline-driven “first-level” investors do. Then I’ll give you a way you could double (or more) your rebound gains thanks to a terrific closed-end fund (CEF) yielding 7.2%—and “spring loaded” for 35% returns this year.

The Ignored Connection Between Jobs and Stocks

To get at what’s in store for the markets in 2019, we have to go back to 2009 and zero in on one thing: jobs.… Read more

Macro headlines drove the trading action this week. On Wednesday, the Bank of England lowered its 2019 growth forecast to 1.2%, which would represent the worst performance in a decade. The European Commission also cut its target for 2019 growth in the Eurozone on Thursday, to 1.3%.

Elsewhere, reports circulated this week that President Trump would meet with North Korea’s Kim Jong Un later this month. However, volatile trade talks with China took a turn for the worse and Trump said on Thursday he will not speak with President Xi before a looming deadline on March 1, for increased tariffs on Chinese imports.… Read more

Most dividend investors understandably love the idea of an 8% No Withdrawal Portfolio. It’s a simple yet “game changing” idea that you don’t hear much from mainstream pundits and advisors.

Find stocks that pay safe 7%, 8% or more and you can retire comfortably, living off dividend checks while your initial capital stays intact (or even appreciates).

Now this strategy is a bit more complicated than simply finding 8% yields and buying them. Granted the recent stock market pullback has benefited investors like us because we can snag more dividends for our dollar. Yields are higher overall, and that’s a good thing.… Read more

It happened so quietly, you may not have even noticed. But the script has flipped on interest rates—and today I’m going to give you my favorite way to profit. (hint: this buy pays an 8.8% dividend—enough to hand you $8,800 a year in cash on every $100k invested—and is poised for quick 10% price upside, too!).

Let’s start at the beginning.

A Low-Key 180

I’m sure I don’t have to tell you that the big story of the last three years has been the Fed’s aggressive rate hikes. But the big story of the next three years will likely be a lack of aggressive rate hikes.… Read more

The last time we had this Fed setup, these safe 6%+ paying bonds jumped 20% in the year ahead!

The setup? The likelihood that short-term interest rates (as set by the Federal Reserve) will go nowhere over the next 12 months. To see this we’ll turn to the Fed funds futures, which are contracts that reflect real money being bet on the Fed’s upcoming action (or lack thereof). Collectively they comprise the smartest crystal ball available this side of Jay Powell.

Right now, the smart money is giving “no hike” a 75% probability between now and January 2020. And when we add in the bets on a rate cut or two, we’re looking at a 92% chance that rates will either be unchanged or lower this time next year:

Smart Money Bets 75% “No Hike” for 12 Months

This is bullish for – you’ll never guess – floating rate bond funds.… Read more

Wondering if it’s too late to jump on this market recovery? I have great news: it absolutely is not.

But you won’t reap the biggest gains by, say, putting cash into your typical S&P 500 name—or in a passive index fund like the SPDR S&P 500 ETF (SPY).

Because while rising corporate profits will likely propel the market higher this year, you’ll put yourself in a much better position by hitting out at the two sectors (and two specific buys) I’ll reveal now.

Both sectors will be on my personal list this year, and I’ll be recommending stocks from each one to members of my Contrarian Income Report service, too.… Read more

As investment strategist at CEF Insider, it’s my job to tip you off to the best closed-end funds (CEFs) out there. But it’s also my job to steer you away from those that are, well, terrible.

So today we’re going to zero in on four CEFs whose massive dividends (up to 12.7%!) might tempt you to buy. But doing so will lock you into an ever-shrinking income stream while the share price crumbles beneath your feet.

The first red flag? All four of these funds are from Wells Fargo (WFC), a bank that’s been at the center of various scandals for years now, starting with the 2016 fake-account fraud that took down Wells’ CEO at the time.… Read more

The busiest week for earnings so far this quarter delivered several positive surprises, as the broader U.S. market averages finished off the best January performance in three decades.

Industrial and Energy stocks were the big winners for the month, led by an 18% gain in the underlying price of crude oil. On the other hand, Utility and Healthcare names have lagged in the opening weeks of 2019.

FOMC Flinches and Jobs Growth Surprises

There was little belief that Chairman Powell and the Fed would change interest rates on Wednesday, but the tone of their commentary did turn decidedly more dovish this week.… Read more

Money-losing firm India Globalization Capital (IGC) found the magic formula last October. They put two investing buzzwords side-by-side:

1. Cannabis, and
2. Blockchain.

The savvy marketers at IGC then introduced an energy drink infused with hemp, and wow, what a rush!

IGC Jumped 10-Fold on Buzzwords

We rational income investors fortunately avoided this circus. I wrote to you as the blockchain-weed craze was peaking:

We level-headed contrarians should stay away from this circus. In fact, you need to be honest with yourself about the latest weed craze. If you’re tempted at all to buy this junk, it’s better if you change the channel.… Read more