2024-04-23 07:00:00 ET
Summary
- Bitcoin's price has surged to $65K, but I remain skeptical of owning this virtual asset, opting instead to own high-yielding real assets.
- This includes traditional assets like real estate, energy, consumer staples, pharmaceuticals, and telecoms for reliable income streams.
- In this article, I present 2 quality picks trading at low valuations for their reliable income streams.
It's not hard to look for yield these days, and that's a great thing for income investors looking to build their cash flow. While it's tempting to get income from high-yield savings accounts. It's important to keep in mind the following considerations:
- How long will that yield last? Yields can change based on the Fed's interest rate policy and inflation. For example, Treasury I Bonds now yield just 5.3%, compared to over 7% a couple years ago.
- Reinvestment risk. When bank savings products such as CDs mature, there's no guarantee that the principal can be reinvested at a similar rate.
- Opportunity cost. Fixed income streams don't rise like dividends do, and investors risk missing out on capital gains and dividend increases should their allocation to fixed income be too high.
Read the full article on Seeking Alpha
For further details see:
I'm Buying Real Assets With Up To 8% Yield