It was a short, but volatile week for U.S. markets, which were closed on Wednesday, in remembrance of President George H.W. Bush.

The big story this week was the partial inversion of the U.S. Treasury yield curve, as stocks swung violently against each conflicting headline resulting from ongoing trade talks with China and potential OPEC production cuts.

The yield curve is an important barometer for stock investors of all shapes and sizes. In general, the curve slopes upward over time, as positive economic growth and inflation tend to go hand-in-hand.

Source: www.treasury.gov

However, the curve inverted this week, when 5-year interest rates moved below 2-year rates.… Read more

If you want to retire on dividend income, then you probably need to avoid S&P 500 stocks altogether.

Collectively they yield 1.9% today. This means that a million dollars invested will generate just $19,000 per year. That’s “side hustle” money, not an actual full salary.

Another problem with buying popular stocks and “hoping” they appreciate in price? The odds are actually stacked against you thanks to an uneven business playing field. Check out the returns of “safe” S&P 500 stocks year-to-date. Would you like to throw a dart blindfolded at this board?

Source: Contrarian Outlook

If you delved into some of the stocks from this grossly overcrowded index, you …

• Had a better-than-50% chance of losing money.

Monday’s major jump in stocks is the beginning of a trend that will catch a lot of investors by surprise: fundamental strength thanks to trade war fears abating.

We aren’t out of the woods yet, as Tuesday showed us. While the market cheered the tentative cease-fire between Xi and Trump on Monday, the lack of details and confusion hit the market on Tuesday.

And that’s a good thing, because it’s set up investors for an opportunity to buy equities cheap before the relief rally around the corner.

Trade Ceasefire Opens Buy Window …

The way I see it, the trade-war ceasefire is likely the beginning of a deal coming down the pipe in the next three months.… Read more

Stocks or bonds? For income-focused investors, why not blend the best of both worlds to collect interest and enjoy share price upside?

This is the goal of convertible bonds, a “country club” favorite. (Before the holidays you may be tempted to add some convertibles to your portfolio simply so that you can brag about them to friends and family!)

Convertible bonds, like the preferred shares we discussed last week, pay regular interest. In this way, they act like bonds. You buy them and “lock in” regular coupon payments.

But convertibles are also like stock options in that they can be “converted” from a bond to a share of stock by the holder.… Read more

Right now, I’m betting you’d jump on a stock that pays a high dividend (I’m talking 5% and more here) and doesn’t sink with the market in a crash.

I have great news: today I’m going to reveal 2 such stocks. Each hands us growing 5%+ dividends now—and each steered through the market’s stomach-churning autumn without a scratch.

One of these plays even rose 9% while the broader market went up in smoke!

And these 2 are just getting started: both of these “pullback-proof” dividends have baked-in price upside we’ll enjoy in 2019 and well beyond.

Why?

Because both of these 5%+ payers are riding unstoppable megatrends that will lift their stocks for decades to come.… Read more

Ignore the doomsayers: 2019 is setting up to be a strong year for equities—and a great year for dividend investors like us.

I know this might surprise you, so let’s break it down. Further on I’ll give you 5 funds (with dividends up to 11.5%!) that are flashing buy signals you can’t afford to ignore.

So why am I so bullish on the year ahead?

Thanks to the record-breaking profit growth we’ve seen in 2018, along with continued steady gains in employment and wages, there’s little reason to believe next year will bring the big downturn everyone’s worrying about. Instead, the Fed’s prudent scaling back of interest-rate hikes should fuel more growth.… Read more

If you want to figure out how long it will take to double your money in an investment, you use the “Rule of 72.” But income investors can put this rule to work, too, to figure out just how quickly their dividends will pile up.

I’ll show you how – and I’ll show you five dividend stocks that are on pace to double their dividends in just seven years.

The Rule of 72 is just a simple equation you can use to project the amount of time it would take to double your investment money. The equation:

72 / compound annual interest rate = # of years to double your investment.… Read more

No one likes digging through pages of regulatory filings, but they can often yield valuable information.

For example, institutional investors with at least $100 million of assets must file a 13F form with the Securities and Exchange Commission once a quarter. Think of this as a quarterly scorecard or a window into the holdings of some of the most successful and often secretive investors in the market.

Should you follow suit and piggy-back some of these trades? Well, it’s certainly cheaper than the $1 million minimum buy-in it often takes to invest with the most successful hedge funds, if you’re even invited.… Read more

Are you looking for the 1 perfect buy for big upside and huge (I’m talking 9.5% here) dividends?

Near the end of this article, I’ll show you 1 fund that will let you nail down both. This opportunity comes from a shift in the market that’s been so quiet, almost no one has picked up on it—except for one group.

Enter the “Smart Money”

You’ve probably heard the phrase “smart money”.

It’s really just shorthand for active managers, like those at the big hedge funds, investment banks and other massive institutions, who make billion-dollar bets based on massive troves of information and experience.… Read more

As you near (and enter) retirement you probably favor bonds, which provide income with less drama than stocks. However, less drama means less potential upside. With retirees living longer than ever before, it’s important to not go too conservative too early in life. And fortunately today, even 65 or 70 may be too early!

One suggested solution for our long life expectancy “problem” is to stay with stocks longer. But stocks can go down as well as up and a big pullback can inflict permanent damage on a portfolio.

So, we want to capture the dividends that stocks pay and the upside potential that they provide by minimizing our downside risk.… Read more