Income investors should embrace higher yields while interest rates remain at (hopefully) their peak. With one Fed rate cut likely in the cards later this year, we’ve pretty much seen a “reset” of expectations of sorts. Indeed, we can live with another few months of elevated rates, with one cut by the year’s close. There’s really no problem with that, especially for investors focused on the long term. Once rates do start falling, low-cost dividend stocks may also stand to yield less over time. Th
Despite the best efforts of management, employees and investors, some companies simply cannot withstand certain macroeconomic pressures. In the case of the stock market and publicly traded companies, these kinds of pressures can highlight which stocks to sell. For example, a candy bar company famous for the flavor of its chocolate would not be able to survive a cocoa bean blight that makes the cost of chocolate too exorbitantly high to profit from. The same is true for any company that produces
Goods inflation is back to normal. Services are still a problem.