As interest rates collapsed in the past few years to multi-decade lows, investors had no choice but to flee low-yielding government bonds and bank CDs for higher-yielding, dividend-paying stocks. From master limited partnerships (MLPs) and real estate investment trusts (REITs) to foreign government bonds, it’s been an era of profitable investing. Yet… Read More
As interest rates collapsed in the past few years to multi-decade lows, investors had no choice but to flee low-yielding government bonds and bank CDs for higher-yielding, dividend-paying stocks. From master limited partnerships (MLPs) and real estate investment trusts (REITs) to foreign government bonds, it’s been an era of profitable investing. Yet signs are emerging that this trend may start to reverse course. The yield on the 10-year Treasury note has spiked higher since the beginning of May to roughly 2.2%, and if we continue to see robust monthly employment reports, then these rates will probably climb steadily higher as the year progresses. Simply put, the economy is… Read More