Leave a comment

FED RAISES RATES ON WEDNESDAY? DOUBTFUL.

Welcome to Dividend Income Investor

September 19, 2016

The stock market will be quiet until the Fed meeting announcement on Wednesday.

As we have mentioned many times, it is very difficult to find positions at reasonable prices as income investors have driven prices to stratospheric heights due to the continued low interest policy of the Fed. 

Our focus has been to buy”new” issues when possible which provides us the ability to get in at lower offering prices.

If you have been buying the positions in the Core Portfolio for any reasonable amount of time (and at much lower prices contrasted to where they are today), you are quite happy with the dividends that you are receiving.

We love Corporate Bonds but there are currently no bargains either….most high quality bonds are paying one to two percent.  We have recently purchased a few risky corporates offering high rates.  But we do NOT intend to continue this policy.

We ARE watching BKLN or FTSL for a buy which could be a good position in a rising rate environment.

Highly respected Kiplinger finance is offering a free copy of their ‘income’ newsletter.  We suggest you take advantage of this opportunity.  (We are not currently a subscriber to any Kiplinger publications nor any other paid financial newsletter for that matter.)

https://www.kiplinger.com/store/samples/kv_recent_issue.pdf

CLICK HERE FOR Dividend Income Investor Core Portfolio SHOWING current holdings===WARNING:  MOST OF OUR POSITIONS ARE INTEREST RATE SENSITIVE.  IF RATES GO UP QUICKLY WE WILL WANT TO START SELLING.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: