What is the Outlook for the Vanguard GNMA Fund in 2020? GNMA bond prices like all bond prices are influenced by the level of interest rates and the outlook for interest rates. By Sasun Bughdaryan @ Shutterstock.com GNMA bonds are bonds that are backed by mortgages, so their prices tend to be influenced more by the level of long-term interest rates than by short-term interest rates, but both matter. The Federal Reserve has absolute control over short-term interest rates, but their policies heavily influence the level of long-term interest rates. What Does Interest Rate … [Read more...]
Banks Are Selling Your Private Info to Strangers
Most Americans have become accustomed to the idea that when they use Google or Facebook, information on their Internet habits is being sold to advertisers who want to target them with ads. But until now that phenomenon has been mostly confined to cyberspace, and there are ways to avoid them. That's all beginning to change though. Now industries that were around even before the Internet are attempting to make profits from your private information. The most dangerous of these is your bank. The Associated Press has reported that banks are selling information on customers' spending habits to … [Read more...]
Here’s Why You Should Treat Your Disaster Cash like Gold
In a true catastrophe, the value of your dollars may plummet to zero, and all you'll be left with is your gold, canned goods, and ammo for bartering. That would be a terrifying scenario for sure. That said, most disasters you'll face in life won't impact the value of your cash, but they could very well impact your access to your bank account. I've been writing to you recently about how the wealthy are moving their money out of bank accounts and into more traditional safety deposit boxes. For large amounts of cash you wouldn't want unattended at home, safety deposit boxes are a great idea. … [Read more...]
The Biggest Problem for Warren’s Wealth Tax: The Constitution
The biggest problem wealth taxes proposed by candidates like Elizabeth Warren and Bernie Sanders may face is the constitution itself. Direct taxes like wealth taxes are specifically banned by the constitution. So was the income tax until the 16th amendment allowed it in 1913. Now, progressives are looking for ways to slip a wealth tax by the Supreme Court. Laura Davison and Ben Steverman report for Bloomberg: Democratic presidential candidates Elizabeth Warren and Bernie Sanders want to enact a wealth tax to pay for their large government programs. The biggest barrier may not be Congress, but … [Read more...]
You Must Find Investments that Fit Your Needs
In the past, I've explained to investors that they need to find investments that fit their needs. You must measure your needs against what I referred to as a “complete understanding of where we are in terms of both the economic and monetary cycles.” I wrote: I am not looking for the investment markets to do anything for me. I long ago positioned myself to wade through any form of financial market dislocation. I always evaluate risk before potential returns. I invest with a complete understanding of where we are in terms of both the economic and monetary cycles. Where I would invest new money … [Read more...]
Save Yourself! 92% of Wealthy Danes Want to Pull Their Money from Banks
In Denmark, the central bank began setting negative rates in 2012, and for wealthy Danes, it's been a chore to avoid giving money to the banks ever since. There are 178,000 Danes with more than 750,000 crowns in the bank, and they have been moving money to separate accounts, or simply taking it out of the bank altogether ever since negative rates were instituted. Who wants to pay the bank to hold their money? No one, of course. Last week I detailed for you the growing trend of wealthy individuals using safety deposit boxes. A safety deposit box has many benefits besides moving your money … [Read more...]
Ginnie Mae (GNMA) Bond Yields
What do Ginnie Mae (GNMA) bonds yield? The table below lists the yields on two of the major Ginnie Mae (GNMA) indices as well as the latest SEC yield on some of the top Ginnie Mae (GNMA) dedicated funds. A note of caution when you are looking at yields on Ginnie Mae funds. Like all SEC yields, these yields are based on the last 30-days of income generated by the fund. They are not directly comparable to the yields on the Merrill Lynch and Barclay’s Ginnie Mae (GNMA) indices. Description Symbol Yield as of 10/31/2019 Yield as of 11/30/2019 Merrill Lynch Ginnie Mae … [Read more...]
Junk Bond Yields
What do junk bonds yield today? The table below lists the yield of the Merrill Lynch junk bond index (High-Yield index), as well as the latest SEC yield on some of the top junk bond (high-yield) dedicated funds. A note of caution when you are looking at yields on junk bond funds; Like all SEC yields, these yields are based on the last 30-days of income generated by the fund. They are not directly comparable to the yields on the Merrill Lynch junk bond indices. Junk Bond Fund Description Symbol Yield as of 10/31/2019 Yield as of 11/30/2019 Merrill Lynch U.S. High-Yield … [Read more...]
The Highest Yielding Dow Stocks
For investors looking for high-yielding dividend stocks to buy, the highest dividend payers in the Dow Jones Industrial Average (DJIA) is a common starting point. Below is a list of the 10 highest yielding Dow stocks. Today, the average yield of the 10 highest-yielding Dow Jones Industrial Averages stocks is 3.96%. You can see their individual yields in the table below. Click the company name for more information on each stock. To view the entire list of Dow stocks ranked by yield, click here. Highest Yielding Dow Jones Industrial Average Stocks Company NameDividend YieldDow Inc. … [Read more...]
The Highest Yielding S&P 500 Stocks
If you are on the hunt for yield, the top 10 highest yielding S&P 500 stocks is a tempting place to look for new ideas. Compared to the less than 2% yield offered by investing in an S&P 500 index fund, the average yield of the highest 10 dividend-paying S&P 500 stocks is over 8%. The list below includes the 10 highest yielding S&P 500 stocks along with their indicated dividend yield. Click the company name for more information on each stock. Highest Yielding S&P 500 Stocks Company Name Yield Macerich (MAC) 11.1% Macy’s … [Read more...]