Displaying items by tag: income

Everyone and their dog is searching for viable alternatives because omicron has the stock market skittish and there’s absolutely no yield in bond markets. This has many investors turning to REITs, but how do you find the outperformers. There are six key metrics to look out for: a high fund from operations, total cash from operations growth, high liquidity ratios, accelerated dividend growth rates, a good-sized market cap, and finally price gain. These are the most important factors when evaluating REITs. Some of the best examples in these leading categories are Prologis, Essential Properties, Innovative Industrial Properties, and Life Storage Inc.

FINSUM: Alternatives could have their most promising year yet with all the outflows from the bond market coming in.

There is a growing interest among investors, particularly when it comes to retirement, in annuities. Nearly 4/5ths of investors have interest in annuities but as few as 10% of retirement plans offer them. Things are changing at fidelity however, as they are giving the opinions for a guaranteed income direct plan if your employers pick it up. And it seems more employers will be taking on annuities in part of their 401k coverage given the 2020 Secure Act which eased the legal burdens on companies when picking up annuity coverage. Additionally Fidelity is giving the option of naming a beneficiary to your annuity which will curb the biggest concern among investors.

FINSUM: Most Americans aren’t saving enough for retirement and for those retiring sooner rather than later an annuity is a more secure bet given market turmoil.

Bonds and equities are more correlated than ever and on top of that there isn’t any yield in the bond market these days due to the trillions in QE. Investors are now searching for an uncorrelated hedge to what looks like a looming equity bubble, and private credit markets are giving investors an alternative. High fees, opaque transactions, illiquid markets, and locked up finances are downsizing private credit but more companies are searching for financing partnerships in private markets. Middleman companies like Blackstone and Carlyle Tactical Private Credit can match companies in transactions that wouldn’t be possible in public markets and generate yield that wouldn’t normally be possible. In order to meet the rising demand private creditors are pitching to larger companies that could have access to the public bond market and giving persuasive pitches.

FINSUM: Private credit is the most enticing alternative to the volatile bond market. 

ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) is the only ETF that focuses exclusively on pure-play companies—the owners and operators of infrastructure assets...See More

Tech stocks had a big fall this week, but it more importantly it was the concentration of tech stocks that hedge funds loaded up on that took the biggest tumble. For instance, Farfetch Ltd. and Snowflake Inc. faced their largest drops since March. Hedge funds have been bullish on growth stocks and the high value/low income stocks set record holdings dating back to 2002. Driving tech’s downfall are rate hikes being priced into yields and undermining stocks hinging on future cash flows, like tech.

FINSUM: Tech stocks are more fragile than ever because profits are dwindling after the pandemic boost, and future rate hikes could cause serious tech blowback.