“Here’s how to secure safe income in “an incomeless world”…

U.S. 10-year Treasury bond yields have exploded almost 100% higher over the last five months. That’s led some to believe it’s safe to return to securities like real estate investment trusts (REITs) and non-investment-grade “junk” bonds for high-income yields.

But The Palm Beach Letter’s Teeka Tiwari says that’s a big mistake…

Instead, he’s recommended an “outside-the-box” way to nab safe 5% yields… all while buying securities at up to a 25% discount to their market price. Big T reveals more in today’s 3-Minute Market Minder…

(After you watch the video, check out Teeka’s favorite “off grid” asset right here…)

https://youtu.be/9ZIL5xCU8X0&w=650

TRANSCRIPT

Hello, friends, and welcome to Big T’s 3-Minute Market Minder. Today, I want to talk to you about the importance of searching for income in an incomeless world.

What we’re looking at here is the 10-year yield—the yield on the 10-year Treasury. And it’s gone up a lot. It’s gone from below 1.4%, all the way up to 2.34%, and as high as 2.5%. And this is certainly very encouraging for people that live on income.

But it’s still ridiculously low, and you still might be tempted to be reaching for income. And I’m going to tell you friends, that’s a mistake.

What you need to do as you look for income is think outside of the box. One of the things that I’ve been doing over at the Palm Beach Letter is writing about ideas that are these hidden pools of income that a lot of people don’t know about. So, one of the things I’ve been doing is recommending what are called closed-end funds. And these funds typically trade at a discount to their assets. And they have these neat strategies that they use in order to develop income.

So, one of them that I recommended very recently gives you ownership in American blue-chip stocks at a 20% discount to their market value and also pays over 5% in dividends—absolutely incredible product.

So, you take a look here at the S&P 500 that’s been breaking out, and you think, “Oh my goodness, how can I buy the S&P 500? It’s breaking out, it’s so overbought, how can I make a decision to buy that?” Well, something like this closed-end fund that we found over at the Palm Beach Letter is just an incredible way for you to basically buy the broad market at a 20% discount and collect a really fat dividend.

So, today’s key takeaway is this: You’ve got to think outside of the box if you want to secure big, safe dividends. You cannot go chasing returns in these [junk bonds]. A lot of people are trying to make out that these junk bonds are better credits than they really are. And they’re not, there’s still a lot of risk in the junk bond market. A lot of risk in these things—in some of these REITs that are giving these outrageous returns.

So, again friends, finding income in an incomeless world is very important. But you’ve got to be smart about it. You’ve got to be strategic about it. And we’ve done a lot of work on this very important subject in the Palm Beach Letter, and those of you that are members have access to all of that research and many of the ideas that are yielding great income right now—stuff that’s yielding 5%, 7%, 10%—is still actionable and you can take advantage of it.

All right, friends, that is enough out of me. I will catch up with you in the next video. And I want you to always remember: Let the Game Come to You!