Top High-Yielding Low-Value Buys During These Volatile Times
During the last weekend, positive comments came from the White House, and the market immediately followed with an upbeat mood. Nonetheless, we should brace ourselves for continued volatility as the trade war saga progresses.
The recent market environment is the best reminder that in investing, the most important thing is a clear and unambiguous strategy, which holds our emotions firmly under control.
As I pointed out during the last weekly update, I still see opportunities in the U.S. equity market. First, I expect that Trump will be highly motivated to reach a trade deal. The reason is that a prolonged trade war would probably lead to a recession and sharp market correction. Both would be severe impediments for his reelection.
Second, interest rates have extended their freefall. During the last week, the 10-year yield briefly touched the 1.50% mark. With interest rates at record low, investors have a strong incentive to seek higher yield in the equity universe.
10 Year Treasury Rate. Source: Macro Trends
However, despite the medium-term supportive environment, to be successful in the long-term, an investor needs to pay attention to two crucial things. First, one needs to choose the right strategy for his personality, and second, an investor needs to take calculated risks only when the odds are in his favor.
One method that offers calculated odds in an investor's favor is the shareholder yield strategy.
This approach offers precise stock selection,... Read more