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 Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.