It was a pretty disappointing June jobs report today, and the market acted accordingly. After trading up to 930 yesterday, the wind came of the sails today and the S&P fell to near 900. It seems the 'saving' or creating of those three million jobs from the stimulus programs hasn't kicked in yet, and today, the market is wondering if they will.
The good news, though, is that today's wet towel headline for the market is great news for high-yield investors. It's presenting us with a golden opportunity to lock in some juicy yields while the market was under pressure. So in today's Cash Machine weekly update, I discuss today's jobs report, the market's response and which of our recommendations are providing attractive entry points.
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While there's a lot of 'window dressing' providing support to the markets right now, we need to be wary of the weakening U.S. dollar. A declining dollar could put a lid on the current rally, which none of us want to see.
With the markets finding some support in recent weeks, we can take a step back to look at the beaten down hedge funds. This asset class has received a lot of bad press as of late, but I think it's unfounded. In fact, since hedge funds have been sold down to the tune of 80%, I think it is time to reconsider this asset class for retail investor portfolios as the income streams and upside potential are hugely attractive. So in this month's Cash Machine issue, I add a well-known hedge fund to the Aggressive High-Yield Portfolio.
In addition, I'm seeing an opportunity in one of the biggest winners in a recovering economy. This science and technology company boasts a solid 5.7% yield, and is my latest recommendation for the Conservative High-Yield Portfolio.
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I'm always looking for new investment opportunities to add to our portfolios. Here's what I'm researching right now and will let you know if any of these companies meet my buy criteria. Be sure to check back often.
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 Mae's and Money Markets are paying provides important reference points for investors stepping outside these traditional and ultra-safe investments. Yields determined as of 5/30/09. |
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If you think that the S&P 500 is heading back to 900, how does this affect our hedge play?
The S&P tested key support at 880 on Friday, May 15 before trading back up through 900 on Monday with the Dow's 235-point gain. The S&P has potential to retest ...
For more than three years, 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
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