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Income Strategies For An Inverted Yield Curve

Published Tue, 11 Jun 2019 06:45:00 -0400 on Seeking Alpha

Last week we touched on the stark difference between high-yield, high-risk REITs and low-yield, lower-risk REITs and compared some of the underlying holdings of two ETFs. The question of whether to play it safe or not, really depends on each investor's preference, but that article focused primarily on equity REITs, a sector that we are neutral on based on valuations and one which investors have shown a heightened level of interest in. In a previous article, The Belgian Dentist shines a light on the bullish sentiment toward REITs and how extreme levels of sentiment can be a strong contrarian signal.
Now that the yield curve is inverted or at least flirting with inversion, depending on which part of the yield curve you consider, the prospect of lower rates has increased. It seems only a month ago - maybe two - that we were looking at investment options for rising rates. As confusing as that might be and as whip-sawed as we might feel as investors, we need to be aware of the best opportunities to invest in if the yield curve stays inverted and a rate cut happens.
Income Strategies For An Inverted Yield Curve
The yield curve on US Treasuries recently inverted again and once again talks about an imminent recession have started. Some economists will tell you that an inverted yield curve has preceded every one of the past seven recessions and that's certainly true. But the yield curve also has been inverted on several occasions that were not followed by a recession. "This... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ANNALY CAPITAL MANAGEMENT 9.21   0.0 -1.59 1.20 13.16
ISHARES FTSE NAREIT MORTG PLUS CAPPED INDEX FUND 41.92   0.0 0.00 0.00 0.00

ANNALY CAPITAL MANAGEMENT - NLY
ANNALY CAPITAL MANAGEMENT - NLY  


Older articles featuring Annaly Capital Management (NLY):
MORL And MRRL: Multiple Dividend Cuts Coming Among Mortgage REITs
Why We Are Invested In These Super High Dividends - Yields Up To 16.2%
My Dividend Growth Portfolio May Update: 42 Holdings, 1 Buy
Cherry Hill Mortgage's Dividend Sustainability Analysis (Includes Q2-Q4 2019 Dividend Projection And Recommendation)
An Inverted Yield Curve Means Tough Times Ahead For MREITs
Two Harbors' 14.5% Dividend Yield Is Worth It
Cumulative Dividend Cuts At The Midpoint Of Q2 2019
2 Buy Ratings With Yields Up To 12% From The REIT Sector
Don't Miss Out On This 6.85% Dividend Yield From AGNC Preferred Share
IShares Mortgage Real Estate ETF Has The Highest REIT Yield, But The Lowest Performance

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