Investors have just come off the most volatile week in three years that included wild swings in the major averages, a steep correction in the oil sector, high-level anxiety of Europe sliding back into a recession, reports of ISIS about to invade Baghdad and the threat of the Ebola virus striking fear across global borders.
The week was capped with the Dow posting its second-largest gain of the year; buyers stepped in just as the S&P 500 came within a whisker of registering a 10% decline from the Sept. 18 peak of the 2,019 level, which marked the beginning of the current decline. By definition, the market has endured a four-week correction that, if contained to the lows of last week, will fall into the category of 'garden variety.'Read
Back on Sept. 17, when the S&P 500 broke cleanly above the prior high from 2010, the market was set to trend up to 2,050 based on a set of circumstances that at the time were viewed as quite bullish. The Federal Reserve reiterated its dovish stance toward holding short-term interest rates at below 0.25% for a 'considerable time.' Exactly what Mr. Market wanted to hear.
Then a series of unfavorable events derailed prospects for a rally, all in the span of a couple weeks. It kicked the stool out from under the bullish set up, leaving Mr. Market in a quandary as to whether the current 6.2% pullback for the S&P is the garden variety, making this a buying opportunity, or whether there is structural deterioration.Read
The compare and contrast feature includes a table of guaranteed yields reflecting current yields as a way to compare risk-free investments versus recommendations within the Cash Machine service. Having a handle on what Jumbo Certificates of Deposit, Treasury Bills, Treasury Notes, Ginnie Maes and Money Markets are paying provides important reference points for investors stepping outside these traditional and ultra-safe investments.
Yields determined as of 10/11/14.
For almost a decade, Bryan has brought his expertise on high-yielding investments to the Cash Machine service. His main goal is to help income investors craft a portfolio that will pay a reliable income even during the worst of times. Read
Bryan Perry discusses four stocks with great potential during an inflationary environment with Liz Claman and David Asman, anchors of Fox Business' After the Bell TV segment.