Bernanke and the Federal Reserve have chosen a path of less resistance. Specifically, they’re going to do whatever it takes to keep interest rates negligible… all the way out to 2014! And Ron Paul doesn’t have the muscle or the media to stop them.
Record-low rates may be great for borrowers whoÂ qualify forÂ home loans. However,Â banks remain super-stingy. Moreover,Â lowÂ ratesÂ have been far moreÂ beneficialÂ to corporationsÂ wishing to refinanceÂ debts. (Say goodbye to the easy money in preferred shares ofÂ AT&T and DTE Energy.)
On the flip side, savers andÂ income investors have had less to be cheerful about. CDsÂ protect principal in theory, but rates are so low, oneÂ loses out to inflation. Ditto forÂ the holders ofÂ 10-year treasury bonds.
So how can income investors get more yield? They may have to consider longer-dated bond maturities,Â leverageÂ and/or foreign investments.Â
High qualityÂ U.S. corporate credit notÂ enough?Â Consider diversifyingÂ overseas withÂ ProShares German Sovereign/Sub-Sovereign (GGOV). It isÂ the first U.S. ETF that focusesÂ on German sovereign debt.
Believe thatÂ ”riskier” corporationsÂ have improved their balance sheets?Â One writer below serves up 11 closed-end funds (CEFs) that use leverage and/or travel further out on the yield curve.
A-Bund-ance Of New German Debt Investment Vehicles â€“ Michael Aneir, Barronâ€™s
4 Strategies For Increasing Yield And 11 CEFs That Will Help You Profit â€“ The Boring Advisor, Seeking Alpha
Four Paths To Real Estate Profits With ETFs â€“ Ron Rowland, Money And Markets
Key Report For Homebuilders ETF â€“ Dave Fry, The Street
Less Risk, More Return â€“ Paul Amery, Index Universe
Disclosure Statement: ETF ExpertÂ is a web log (â€ťblogâ€ť) that makes the world of ETFseasier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.