There has scarcely been a more important time for investors to hunt for high yields than right now.
The key reason? Safety.
But it doesn't have to stop there. I'm about to show you how you can lock in safe, double-digit yields, during times of economic uncertainty. All it takes is a couple of simple screening tools, the brains to understand that cyclical swings are an opportunity -- not a reason for panic, and the guts to follow through with conviction.
As I'll explain in a moment, readers of my High-Yield International advisory were able to do this very thing in 2009. And if they could do it back then -- during one of the most uncertain economic times in the past century -- then it can easily be done again.
First, let's take a look at where we stand...
Investors face myriad macroeconomic concerns in 2012. Since the beginning of the year, U.S. economic data have weakened markedly -- job creation has been uninspiring at best, and consumers have been hesitant to spend. Meanwhile, many economists are worried about the so-called 2013 "fiscal cliff," a host of tax hikes and government-spending reductions due to go into effect on Jan. 1, 2013. If all of these measures are enacted, it could represent as much as a 4% headwind to U.S. economic growth early in the new year.
Europe is likely already in a recession, and additional fiscal austerity measures due to go into effect this year in hard-hit economies such as Italy and Spain offer little chance for a near-term recovery.
Even the news out of emerging markets has been less than stellar, with the Chinese economy slowing faster than most expected this year. The Chinese government has even enacted several monetary and fiscal stimulus measures to support growth.
Yet readers of High-Yield International know some of the most dynamic opportunities for investors to get high-yielding dividends are overseas.
The best-performing stocks have been defensive, like those in the "sin" and utility groups. The worst-performing groups are those considered economically cyclical -- financials, industrials, transports and consumer stocks.
But investors have a habit of overreacting to short-term events. And that creates great profit opportunities for smart investors.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 11th, 2014 | John Ransom
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 9th, 2014 | John Ransom