The demise of yeild investing has been dramatic.
Bonds seem to be radioactive. And, REITs are declining again.
But still, it was not that long ago when you could get 5% on a Bank
CD!
Indeed, I've probably got an old 5% CD around here someplace.
A "normal" interest rate is not really ancient history, although in
the markets today is seems so.
So, why do we get excited about a 6% REIT?
Or a closed end Muni Fund with 7% yeilds?
IT WILL BE INTERESTING TO WATCH HOW THE HUGE NUMBER OF CLOSED
END "INCOME" FUNDS FARE IN THE NEXT FEW MONTHS.
Remember, the closed end income funds are ALL relatively new!
And, those older ones were considered "crackpot" investments, way
back during the olden days of "normal" rates! A few years ago!
HOW WILL NEW "NORMAL RATES" EFFECT THE VAST CLOSED END UNIVERSE NOW
AVAILABLE!
My hunch is that if bank rates go back to 5%, few people will take a
chance on closed end funds, for only a percent or two more in yeild.
Why bother? It is worth the risks? Why have a brokerage commission between you and your money?
ALL INCOME INVESTING HAS BECOME RADIOACTIVE LATELY.
BUT, IF MR G IS GOING TO RAISE RATES AS PER THE STREET YADA YADA?
HE HAD BETTER DO SO QUICKLY!
BEFORE A GENERAL PANIC SETS IN.
OTHERWISE, HE MIGHT HAVE TO LOWER RATES JUST TO STOP THE PANIC!!
lol.
(What a tangled mess Greenspan's "Bubblenomics" has become.
COMING NEXT! CAN GREENSPAN USE GOLD TO "CONTROL" OIL AND THE
DOLLAR! AND NOT INTEREST RATES! SHOCKING TRUTH REVEALED!
