On the Hunt for Yield in Today’s Low Interest Rate Oceans

Hunting down a decent yield in today’s low interest rate environment isn’t easy for income investors.

For years, savers and retirees have suffered from central bank policies ranging from low interest to no interest. Some countries, such as Switzerland, Sweden, and Japan, even have negative interest rates.

The old rule that banks should pay their depositors for the risk of lending out their money has been turned on its head. Now many depositors pay for the privilege of keeping their own money in a bank account.

Retirees used to rely on what were safe-haven investments with sizable yields, including CDs and money market accounts, to bolster their nest egg. But now, these barely pay you enough interest to buy a pack of chewing gum.

And even if the Fed decides to start hiking interest rates again, the incremental changes it is likely to make won’t make much of a difference to savers in the foreseeable future. Too little, too late.

So what are yield-seeking investors supposed to do?
 

A Three-Step Approach to Steady Yields
 

I’m Patrick Watson, senior economic analyst here at Mauldin Economics.

I’ve known John Mauldin for over 30 years now and worked with him for over a decade. I’ve been helping him assemble his research-intensive newsletter, Thoughts from the Frontline, week after week for hundreds of thousands of enthusiastic readers across the globe.

If you asked me about my greatest skill, I’d probably name my ability to spot macroeconomic trends in the making. I do this by following seemingly unrelated threads and finding out how they connect.

I use that skill in my position as the writer and managing editor of a number of Mauldin Economics’ services, including the monthly newsletter Yield Shark.

Yield Shark is Mauldin’s flagship income advisory service. My team and I are well aware of the unique challenges income investors are facing today, so our declared mission is to help our subscribers by scouring the seas for high-yield income opportunities.

One of the things I put a lot of emphasis on is that Yield Shark stays nimble.

Being inflexible in a time of great and often dramatic transformations can be the death knell for any investor’s portfolio. So it’s important to me—on behalf of my subscribers—that we’re able to adjust the Yield Shark portfolio to shifting circumstances, changing its course on a dime if necessary.

I’ll give you a glimpse of how I envision the direction of Yield Shark over the next year or more, as we deal with a new US president, an all-Republican Congress, and considerable market volatility. It involves these three steps:
 

  • Diversification is everything: Most mainstream investors believe that high-yield, dividend-paying stocks are the safe haven they need. But the truth is, even “safe” dividend stocks can prove dangerous if they are overbought. For that reason, the Yield Shark team is steering strongly toward funds and ETFs in order to spread exposure.

     
  • Strategic bond investments: There’s a good chance the Federal Reserve might hike interest rates in the next months and years. But this won’t make a huge difference for your savings and CDs. To go with the trend, the team and I hunt down corporate and high-yield bonds, which—unlike long-term Treasury bonds—are less vulnerable to rising interest rates.

     
  • Reduced stock exposure: Egged on by financial talking heads on TV, the investing herd has thrown itself head first into dividend stocks without any scrutiny or consideration. Not a good strategy. The team and I—while continuing to carefully choose stocks with attractive income and upside—will reduce the Yield Shark portfolio’s overall single-company exposure.

     

This three-step approach will help you earn sustainable current income and protect your capital from big losses. My biggest concern is your peace of mind.
 

Try Yield Shark Risk Free for 90 Days
 

Income investors have to get creative in order to earn the steady yield they want and rely on. Yield Shark helps you to achieve that goal—with flexible strategies that adjust to changing political and economic circumstances.

You can find out if Yield Shark is right for you, completely risk free. Test the service for 90 days and if you’re not satisfied—for any reason whatsoever—simply cancel by phone or email and get a full refund of every penny you paid. No questions asked; no hassle.

Just fill out the order form below, and you’re on your way to solid returns through stable investments.
 

YES, I'd like to try Yield Shark today, risk free

Please get me started right away with my risk-free 90-day trial subscription to Yield Shark.

This is what’s included in my subscription:
 

  • 12 monthly issues of the Yield Shark newsletter by Patrick Watson

 

  • Access to years of archives and the Yield Shark portfolio
     

100% Satisfaction Guarantee


There is absolutely no risk in my trying Yield Shark. I have a full 90 days to decide if the service is right for me. If I’m not 100% satisfied—for any reason whatsoever—I can cancel within those 90 days and receive a prompt and courteous refund of every penny I paid.

All the monthly issues, updates, and trade alerts I already received are mine to keep, no matter what I decide.

If I do decide to stay on, my subscription fee will never go up. My subscription will renew at the same price every year, as long as I remain a subscriber.

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