High Yield With Deep Downside Market Protection From 3 Recession-Resistant Picks
Seeking AlphaDividend IdeasHigh Yield With Deep Downside Market Protection From 3 Recession-Resistant PicksJul. 27, 2020 7:52 PM ET|| Includes: AMT, FMX, FMXUF, GPNby: Richard BergerRichard Berger Engineered Income InvestingValue Investing using reliable dividends, engineered with covered optionsSummaryIncome Investors (and most others) should avoid market uncertainty, getting protected yield, and downside market protection. This is especially true in today's virus clouded economic outlook.
I discuss how to engineer high-yield rates with deep downside market protection, including 3 actual current market-priced examples.
Today's ideas provide an 18% annualized yield rate with 11% downside protection, 21% yield rate with 8% downside protection, and a 19% yield rate with 11% downside protection.
High Yield With Deep Downside Protection: Ideas For Navigating The Virus Economy.
This is an 1828 sketch of one of the world's greatest natural harbors, Guanabara Bay in Rio de Janeiro. Since the discovery on January 1, 1502, this bay has been providing a safe harbor from the storms that ravage the world.
Each day, as news of existing and potential new financial headwinds blow across the news feeds, I am reminded of this grand harbor just 60 miles from my home here in Brazil. I have developed Engineered Income Investing as a toolbox of strategies to serve as a safe harbor in the turbulent seas investors sail. High yield with deep downside market protection is just one such tool in our kit. Today, I provide 3 actual current market-priced examples using this strategy to engineer an 18% annualized yield rate with 11% downside protection, 21% yield rate with 8% downside protection, and 19% yield rate with 11% downside protection.
Great uncertainty continues to cast a dark shadow over markets even as they near full recovery from the recent deep and steep virus bear market. In an effort to help readers find and enter attractive positions quickly, I am... Read more