2 High-Yielders Receiving Positive News

My regular readers know that I have been increasingly cautious on the market over the last few months. They also know that I started to accelerate my allocation into high-yielding sectors of the market towards the last quarter of the year. These sectors had vastly underperformed the market in the last half of 2013 as interest rates rose precipitously from the time the Federal Reserve started to discussing the "taper" in late May. I did not personally believe this rise could be sustained as I do not see the 3% GDP growth for 2014 that was the consensus to begin the New Year. I also thought there were some good values in these sectors after their declines in the back half of 2013. Finally, after 2013's ~30% rally, 2014 should be a very different year. It is hard to see returns exceeding 10% for the year after last year's big... Read more