It may not be the prettiest scenario, but it’s the one every investor is facing.
“We have this higher inflation, lower-yield world that we’re dealing with,” says senior analyst Mike Larson, editor of Safe Money Report.
It’s a world “where if you don’t properly prepare your portfolio, or if you don’t take advantage of ways to generate better income and better yields, you are in fact, going to see your nest egg and your wealth shrink over time.”
And inflation, according to Mike, will be making more than just a cameo. It’s likely to stick around for a while.
Because of so much stimulus being poured into the economy, because of so much Fed money-printing, and just simply because we put the worst of the COVID pandemic behind us — even with the recent news with the Delta variant — it’s led to an inflation genie we haven’t seen in a long time. It’s been kept in the bottle.
There are, however, proven ways to generate income, even with “negative real interest rates.” The key is to pick the companies that actually do much better in an inflationary environment, the ones with stronger revenue growth.
In this special four-minute video segment, Mike spells out investment strategies that are bringing his subscribers “juicy dividend yields.” He says it’s critical to play the numbers game just right.
Mike explains:
What you’re looking to do is beat inflation, beat negative interest rates, which is what we have right now.
If you take the nominal yield, a bond that pays 1% or 2%, and then you apply the inflation rate, which was recently 4 or 5%, subtract the yield you’re getting from the inflation rate, and guess what? You’re getting a negative number.
Basically, you’re waking up a little poorer than when you went to bed the night before. Your purchasing power, your money is being eroded by inflation.
If inflation is 2%, 3%, 4%, you want to focus on investments and investment strategies that are going to generate more yield than that, that are going to rise faster than that, in terms of price gains, and are income-generated.
So that’s what we’re looking to do, and it has in fact, worked out very well. By focusing on the tenets of safe money investing, you can do very well for yourself, even in an environment where there are more inflation pressures than we’ve seen in quite some time.
In this insightful video, Mike discusses:
• Sectors of the stock market that are “sensitive to rising prices.”
• Two real estate investment trusts (REITs) that are outperforming the S&P 500 Index and are growing with today’s trends.
• His newsletter, Weekend Windfalls, which focuses on options selling “to turbo charge your income!”
And more!
The information in this short segment couldn’t be timelier. I suggest you watch it now.
Happy investing!
Jessica Borg
Financial Anchor
Weiss Ratings
