Given the uncertainty in the market and an expectation of flat returns, there’s one place investors should be as the Federal Reserve raises rates. Let’s take a look… Volatility has spiked in advance of the Federal Reserve’s expected lifting of interest rates. When such volatility materializes, it usually signals uncertainty. Most of the professional investor class has yet to witness a market of rising interest rates. Text books will tell them how to proceed, but is that something to trust?
About the best we can surmise is more of the same, especially in the equity markets. That means a sideways trade in a very narrow range, with minimal gains—if any—coming over the next year. In reality, there are some certainties regarding the central bank’s actions. At the top of the list is a flattening of the yield curve. Bond investors are in a real conundrum under such a scenario. Do they sell short-term bonds and buy long term as the curve flattens? Perhaps, but a better way to go might be to migrate to dividend stocks. Here are two good ones to help you weather the storm: Kellogg Company (K) and Snap-on (SNA).
Source: InvestorPlace
Related Articles:
- How Much Money Will You Need To Retire?
- Seeding A Forest Of Dividend Growth Stocks
- 7 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
If you are retired, you have likely shifted from building your nest egg to living off your assets. That means you probably gravitate toward ...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
-
REITs are reporting higher revenue and earnings so far for the quarter. But one of the specific metrics for profitability comes from the rat...
0 comments
Post a Comment
Post a Comment