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Lowering Risk Without Lowering Yields With Alpha Gen Capital (Podcast)

Published Wed, 26 Dec 2018 07:00:00 -0500 on Seeking Alpha

Long-time Seeking Alpha Contributor Alpha Gen Capital isn't particularly worried about the current market volatility. As he's been telling his subscribers at his Yield Hunting: Alternative Income Opportunities Marketplace service, he remains steadfast in his belief that the fundamentals of the U.S. economy are strong, making a prolonged sell-off unlikely.
Alpha Gen doesn't deny that there's a palpable sense of fear among investors right now: "Corrections are fairly common - we've gone through about 130 of them since 1900... The low volatility of 2017, where the VIX was below 10 for most of the year, kind of shifted our base."
Alpha Gen stresses that now as always, it's important to block out the noise and not be driven by emotions in managing your portfolio. "The underlying fundamentals of the economy are strong." He adds, "Nothing is going to work 100% of the time. Investors need to be able to weather a little bit of volatility, otherwise they shouldn't be in the markets... they should be in CDs or individual bonds that have low risk profiles."
Despite the volatility, Alpha Gen feels there are good values to be had right now in the fixed income space. A few areas of where values are particularly good: Non-agency MBS and levered loans, which he is offsetting risk of with Muni Bond CEFs. Another area where Alpha Gen feels the sell-off is overdone is in the Preferreds, where he's specifically looking at the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
KKR & CO LP 28.05   10.7 2.63 0.50 1.86