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
Dividend Growth Stocks News
- 11 Dogs of the Dow Dividend Stocks to Buy Now - Insider Monkey - 7/27/2025
- 2 Dividend Stocks to Hold for the Next 10 Years - Yahoo Finance - 7/24/2025
- 2 Reliable Dividend Stocks With Yields Above 5% to Buy Now and Hold Forever - Yahoo Finance - 7/26/2025
- The Smartest Real Estate Dividend Stocks to Buy With $2,000 Right Now - Mitrade - 7/26/2025
- European Dividend Stocks To Consider In July 2025 - Yahoo Finance - 7/24/2025
- Duke Energy (DUK) Dividend Stock Analysis - 7/25/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
Top 3 Risks for Income Investors Today
Posted by D4L | Wednesday, August 27, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.