Archives for June 2016

Last week's May jobs report, which showed the weakest hiring in six years, gave Janet Yellen all the cover she needed to kick the can down the road on interest rates and put off any hikes until July or September.

The markets reacted well, as you'd expect, but Yellen left the door open, saying the Fed was "on track" to raise rates "in the coming months." And with that statement, Yellen has consigned investors to yet another cycle of uncertainty and hand-wringing where the markets have to guess what the Fed will do in July or September.

Here's the thing – the vast majority of investors don't understand that rising rates can be terrific for you and your money if you know what to look for and how to identify the best stocks to buy ahead of time, before the markets price a move in.

If you're one of 'em, don't beat yourself up too badly. It's a common misconception.

The next "rate riot" can be a fabulous opportunity, just as it was 16 months ago when I brought three recommendations to your attention under very similar market conditions and circumstances. Anybody who jumped on board has had the opportunity to capture returns of 41.98% versus only 0.86% from the Dow Jones Industrials over the same time frame.

One of the three stocks remains an especially compelling choice today.