I need to invest in fixed income investment in order to build up my portfolio to withstand market volatility. Here are some great tips on Fixed Income Investment. I need to come up with a strategy on this soon.
- 01/05/2018 – Best Income Investments for 2019
A great list and study of income investments
In our seventh annual look at income-producing investments, Barron’s assessed 11 different sectors and ranked them in order of preference.
MLPs, Junk bonds, European Dividend Stocks and Funds, U.S. Dividend Stocks and Funds, Preferred Stock, REITs, Telecoms, Municipal Bonds, Utilities, Investment-Grade Bonds, Treasuries.
Treasuries are the ultimate haven. Buffett keeps the bulk of Berkshire Hathaway’s cash in Treasury bills—some $75 billion as of Sept. 30.
- 07/02/2018 – think about GE’s 4.418% bonds maturing on Nov. 15, 2035, traded last Wednesday at a yield that is 175 basis points above the comparable Treasury, or roughly 4.71%. GE’s Battered Bonds Look Like a Better Bet Than Its Stock
- CNBC’s recommendations
Consider short-term bonds, fixed annuities and investments in large U.S. multinationals that pay dividends.
Steer clear of long- or intermediate-term bonds and balanced or target-date funds.
This economy may make it difficult for fixed-income investors to find safe income, but it’s not necessary to get 5 percent to 6 percent interest on fixed-income investments when inflation is under 1 percent.
It’s been a rough start for fixed income so far this year.
Don’t expect it to get better, as the FED is planning on raising rates this year. This could mean capital losses for income producing bonds and Treasuries.
The spread between 2 and 30 year US Treasuries is not very big. It will be wise to avoid long dated Treasuries this year.
If you are a buy and hold until maturity investor on individual bonds, the trend will work in your favor.
