Looking For Yield - Meet The Blues Brothers

Published Sun, 23 Feb 2020 02:00:01 -0500 on Seeking Alpha

Coronavirus is infecting the bond markets.
This could take yields down to places that have not been seen in recent memory.
Last year the equity markets provided solace and relief. I would not be counting on them for any kind of repeat performance.
Starved for yield and cash flows, I continue to point to Closed-End Funds as one place to attain both.

The 10 year Treasury is at 1.47%. The 30 year Treasury bond is at an all time low yield of 1.92%. Just deal with it. Get over it. There ain't no yield in sight, and none is likely to show up anytime soon. The Fixed-Income markets have been flummoxed by the world's central banks and they nations that they represent.
"Our Lady of Blessed Acceleration, don't fail me now."
- Elwood, the Blues Brothers
If you ever considered the question of who was more important, the governments or the investors, people and corporations, you now have the answer. The query has been solved with a definitive loud and clear response. Governments win. You lose. Now the only thing to do is figure out what to do about it. We have been snookered. The bells are chiming.
The problem is that many are going to make the wrong decisions. They are going to radically increase their "risk profiles" in an effort to find some yield. Then they are going to pay the price for their decisions. I am warning you off of this road. I am waving the red flag of danger. I am telling you that this is NOT where you want to go.
Coronavirus is also infecting the bond markets. Worries about a Chinese and Asian economic slowdown spilling over into the U.S., have also lifted traders' expectations for interest rate cuts later in the year. This virus not only has medical impacts but market impacts as the Chinese economy is in real trouble, in my opinion, and as a serious hit to global supply chains is in the offing, in my estimation.
"We are now expecting the coronavirus to have a longer impact on global growth," said Dick Hodges, a portfolio... Read more