As part of any investment acumen, anything outside of cash money markets, CDs and T-bills involves some element of risk. In the current market, there are what I would deem economic risks, geopolitical risks, natural disaster risks and pandemic risks. Let’s identify which factors yield-seeking investors need to be consciously aware of, and why they’re so dangerous.
The Specter of Rising Inflation - At present, inflation is running at an annual rate of roughly 2%, a number the Fed and the markets can comfortably live with. Any rate above 3% and Fed policy will likely tighten, sending bond prices lower and bond-equivalent asset classes lower, as well. Trouble Abroad, Or At Home - Natural disasters happen all the time all over the world. The extent of their impact and the particular regions they affect will determine the level of risk to one’s high-yield portfolio. Fears of Mass Disease Outbreaks - Lastly, there is pandemic risk in the form of a disease that spreads out of control. As of last week, the World Health Organization issued a emergency warning about the possible spread of the Ebola virus that is morphing into an epidemic in Africa.
Source: InveestorPlace
Related Articles:
- Income Annuities vs. Dividend Stocks
- 7 Tech Stocks With A History of Growing Their Dividends
- Here's Where To Find Great Dividend Stocks
- 8 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- 10 Dividend Stocks For The Ultimate In Deferred Gratification
Top 3 Risks for Income Investors Today
Posted by D4L | Wednesday, August 27, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.