Metals And Mining: Where The Wild Yields Are

Relative yield is not always about relative value.I haven't been able to paint a very positive picture for income investors lately. First I was bearish on REITs, then I was even more bearish on mREITs. One thing that's really bothered me is that as bearish as I am, I haven't been able to provide alternatives to you. My comments tell me that there are people who are holding onto trading profits that don't know where to move them to.A particularly alarming type of comment that I've come across now on a few occasions are readers who tell me that they've built an entire portfolio on the need to collect current income. That for them, there is no alternative. If you have ever been forced to live through a "margin call", you will understand the comparison I'm about to make: Being forced to make any kind of investing decision based on how much you owe is the most painful kind of thing you can experience in investing.The bottom line is that low rates are going to change the norm. High Yields have become dangerous yields, and what used to grow is now shrinking. Since the Fed refuses to move on interest rates, we haven't really had time to see the longer term effects of what I'm saying is going to happen. If I haven't been clear to this point, then let me shorten it to this simple idea: If interest rates stay at zero, you lose money. If interest rates go up, you lose money. There is no chance for you to do well by staying in leveraged... Read more