The markets are tapping new highs and shell-shocked investors are doing two things:
1) Coming in off the sidelines; and,
2) looking for dividend stocks in a zero-rate environment.
Unfortunately, many U.S. choices are "bid" up right now. Having run 144% off the March 2009 lows, the easy money's been made. U.S. Treasuries offer 1.77% over 10 years and the average S&P 500 stock is generating a mere 2.01%.
So look overseas.
Right now global yields average 3%. In Europe where the markets are still struggling, it's 4%. But act quickly, the difference is going to disappear sooner than most people think.
I say that because the old adage "don't fight the Fed" now applies on a global scale. Five years into the Financial Crisis, it's "don't fight the Feds" as in plural. Not only is Bernanke in an accommodative mood here in the U.S., but so are his counterparts Mario Draghi who heads up the ECB and Haruhiko Kuroda who's leading the charge at the Bank of Japan.
Longer term, we all know how endless money printing is going to end – badly – so let's take that off the table for purposes of today's article. Setting up for profits in the short term is more important.
Play the right sectors, the right central bank and the right regional growth and you could have a hefty appreciation kicker to boot.
Here are three solid choices:
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.