Despite stocks continuing to push against all-time highs, many investors are starting to get jittery after an ugly GDP report shows a 1% contraction in the U.S. economy in Q1. That has led to a bit of “risk off” behavior, pushing investors who are looking for yeild into safe investments like U.S. Treasuries. And as a result, the yield on the 10-year T-Note hit a new 2014 low around 2.4% this week. So what’s an investor to do if they want yield, and when will rates snap back? I talked with Richard Band, the editor of Profitable Investing, about the current state of things and how to find yield even in this environment of rock-bottom rates. His advice includes avoiding long-term bonds and preferred stocks, and instead focusing on PowerShares Senior Loan Portfolio Fund (BKLN) and dividends stocks including utility Southern Co. (SO). Check out the accompanying audio for more details, or read more about Richard’s strategy and picks over at Profitable Investing. Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP.
- Poll of the Day