Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Most Exciting Biotech Stock Of The Year? - 17th May 21
Gold Mining Stocks Fundamentals - 17th May 21
Junior Gold Miners Should be Rallying – What’s Holding Them Back? - 17th May 21
Stock Market - Should You Be In Cash Right Now? - 17th May 21
Learning the Financial Markets - 17th May 21
Is Stock Market Selling Madness About Over? - 16th May 21
Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
Budgies Birds of Paradise Indoor Grape Vine Singing, Chirping and Flying Parakeets Fun 3D VR180 UK - 16th May 21
Wall Street Roiled by Hot Inflation Data: Is This REALLY “Transitory”? - 16th May 21
Inflation Going Stag - 16th May 21
CHIA Coins After 1st Week of Plotting 140 Plot 14tb Farm. Crunching the Numbers How to Win - 15th May 21
Tips to Create the Best Cross-Functional Teams - 15th May 21
Gold: Lose a Battle to Win the War - 14th May 21
Are You Invested in America’s “Two-Hour Boom” Fast Shipping Stocks? - 14th May 21
Gold to Benefit from Mounting US Debt Pile - 14th May 21
6 Solid Signs You Should Have Your Smart Device Repaired Right Away - 14th May 21
Ways to Finance Your Business Growth - 14th May 21
Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
How Much CHIA Coins Profit from 100 Plot 10tb Farm? Hard Drive Space Mining - 13th May 21
Stock Market Bulls Getting Caught in the Whirlwind - 13th May 21
Legoland Windsor Mini land and Sky Train Virtual Tour in VR 360 - UK London Holidays 2021 - 13th May 21
Peak Growth and Inflation - 13th May 21
Where’s The Fed? Watch Precious Metals For Signs Of Inflation Panic - 13th May 21
Coronavius Covid-19 in Italy in August 2019! - 13th May 21
India Covid Apocalypse Heralds Catastrophe for Pakistan and Bangladesh - 13th May 21
TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
Gold Price During Hyperinflation - 12th May 21
Stock Market Extending Phase Two? - 12th May 21
Crypto 101 for new traders – ETH or BTC? - 12th May 21
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Where Can Investors Earn Yield?

Companies / Investing 2011 Jan 21, 2011 - 08:07 AM GMT

By: Mike_Larson


Best Financial Markets Analysis ArticleMunicipal and state debt? Nope. Long-term U.S. Treasuries? Haha! Don’t make me laugh!

None of those are good places to generate income, for all the reasons I’ve discussed before — lousy economic fundamentals, the threat of rising interest rates, slumping investor demand for their bonds, and so on.

So where can you get some yield? What are some of the safer alternatives? Where the heck can you turn with the Federal Reserve waging a war on savers — by holding short-term interest rates near zero.

That’s what I want to help you with today …

“Safer” Sovereigns, Higher-Yielding Stocks, and MLPs Make Great Income Alternatives

Alternative #1: “Safer” sovereigns. Not all sovereign bonds are created equal. Portugal, Ireland, and Greece may be buried in debt, dealing with anemic growth or recession, and seeing their securities tank in price.

But the story is different in many other emerging markets …

China, India, Brazil, and others are benefiting from rising living standards, a flood of investor cash, and strong economic growth. Their credit ratings are going UP, not down.

Emerging market bonds offer attractive yields and a hedge against a sliding U.S. dollar.
Emerging market bonds offer attractive yields and a hedge against a sliding U.S. dollar.

So to me, their bonds are attractive both for yield AND potential capital gains. ETFs like the iShares JPMorgan USD Emerging Markets Bond Fund (EMB) are one way to profit.

Or you can screen mutual funds using a tool like to find the best-performing, highest-rated funds in the emerging markets category.

Go to the website, click on “funds,” then “fund screener.” You can select “taxable bond” as the fund group, then “emerging markets bond” as the Morningstar Category.

From there, you can drill down even further — rank the results by number of stars in the funds’ rankings, eliminate funds that haven’t returned at least 1 percent, 2 percent, or more for a specified period, and so on.

Alternative #2: Higher-yielding stocks. Many stocks offer attractive yields, particularly those in the utilities and consumer staples sectors. Those industries offer slow, steady, predictable growth, and the companies competing in them tend to yield more than the market as a whole.

The PowerShares QQQ (QQQQ), which owns mostly technology and biotech stocks, yields just 0.76 percent while the diversified SPDR S&P 500 ETF (SPY) yields 2.02 percent. That compares with 3.5 percent for the PowerShares Dynamic Consumer Staples Sector Portfolio Fund (PSL) and a hefty 5.3 percent for the PowerShares Dynamic Utilities Portfolio Fund (PUI)seven times more than the QQQQ!

Alternative #3: MLPs — or master limited partnerships. These are corporate entities that distribute most of the income they generate from certain activities, predominately producing, processing, or transporting oil and natural gas.

MLPs have a history of steady cash flow.
MLPs have a history of steady cash flow.

Many of these MLPs have mid-to-high single-digit yields, and they offer the potential for capital gains. The Alerian MLP Exchange Traded Fund (AMLP) is a recently launched ETF that gives you broad exposure to the sector.

Bottom Fishing? Wait Until You See the Whites of the Sellers’ Eyes!

None of these ETFs or funds will rise in a straight line. We’ll inevitably see some corrections along the way. But these are the kinds of sectors I’d focus on for yield.

Meanwhile, if you’re considering bottom fishing in muni bonds, long-term Treasuries, or any of the other sectors I’ve been panning here, my advice is simple: Don’t. You can catch small rallies if you’re extremely nimble. But the trend is still lower in price, higher in yield.

Instead, I recommend you wait for the right price and time — when you can see the whites of the sellers’ eyes. That’s when you should pounce and lock in juicy yields for the long term. I’ll do my best to let you know when I think the time is here.

Until then,


P.S. In this week’s episode of Money and Markets TV, we continued our review of 2010 by looking at some of the year’s hottest investments: Commodities and emerging markets.

If you missed last night’s viewing or would like to see it again, simply go to and follow the on-screen instructions. Access is free and no registration is required.

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in