Smart Money with Keith Springer Saturdays at 1PM and Sundays at 6AM on NewsRadio KFBK 93.1 FM and 1530 AM

How to Invest in this Market – Barron’s Cover Story

Posted At : December 18, 2009 2:07 PM

The most recent Barron’s cover story – Better Than Bonds -is a must read. Apart from the fact that Barron’s is trying to steal my idea and take credit for my “Real Return” investment strategy of investing in high yielding MLP’s, REIT’s, Preferred stocks and corporate bonds, (kidding of course) it’s a great validation of our approach.

As I have long been discussing, there is a tremendous opportunity in investing for “Real Returns” through dividends and income. Buying things that don’t pay dividends is like playing Craps. You’ll be up, you’ll be down and depending on when you walk away from the table will dictate how much money you have left. MLP’s, Preferred stocks, REIT’s and short term corporate bonds right now currently have great yields with downside protection. These are ideal for every investor, except the super aggressive trader as well as for alternatives CD’s. In particular, there is are particularly exceptional opportunities in MLP’s right now, as many provide very high yields of 8-12%, most of which is tax free, capital appreciation and downside protection. Although many are way up, they still likely have a long way to go.

As the article states: “Master limited partnerships could be the past decade’s quietest investment success, generating annualized returns of 18%, against 15% for gold and about zilch for the Standard & Poor’s 500. While the MLP market has rallied sharply this year, major operators still yield 7% to 8% (and more) and have good growth prospects. Despite generating some of the best returns of any asset class in the past decade, MLPs are unfamiliar to most investors. That ought to change, because MLPs now provide 7%-to-8% dividend yields, and much of that income is tax-deferred. Dividend growth could run in the mid- to-high-single-digit range in the coming years, resulting in total annual returns above 10%”

Naturally investors want the very best returns with the least risk possible. Our Real Return strategy of concentrating on dividends offers a great approach of seeking excellent returns with much less risk than the stock market with downside protection. It’s not an approach that is looking for all of the upside potential (with all of the downside as well), but for those happy with most of the upside, more predictable and steady returns and much less risk, this works great. Click the link to see the 11/18 edition, Market Update – How to invest in this market. If you want to see if this approach is right for you, reply back or give me a call.

*In addition, I have an excellent report that discusses and explains MLP’s (Master Limited Partnerships – High Yields and Low Taxes.) If you would like a copy, give me a call and I will send it to you. No charge for subscribers.


Keith Springer

President of Springer Financial Advisors

Springer Financial Advisors ("Advisor") is a federally registered investment adviser located in Sacramento, California. Advisor and its representatives are in compliance with the current filing requirements imposed upon registered investment advisers by the Securities and Exchange Commission and the State of California. Advisor's web site and its emails of general distribution are limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Advisor's web site on the Internet or dissemination of informational emails should not be construed by any consumer and/or prospective client as Advisor's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. A copy of Advisor's current written disclosure statement discussing Advisor's business operations, services, and fees is available from Advisor upon written request. You may also obtain publicly available information about Advisor through the SEC website as follows: Advisor does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Advisor's web site or incorporated in an email, and takes no responsibility therefore. All such information is believed to be reliable and authoritative but does not constitute sufficient information to be the sole basis for sound investment decisions and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Advisor) made reference to directly or indirectly by Advisor in its web site, email, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client's investment portfolio. Certain portions of Advisor's web site (i.e. articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Advisor's (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. The information is of a general nature and should not be applied indiscriminately to particular situations wherein it may not be completely applicable. Advisor is neither an attorney nor an accountant, and no portion of the content should be interpreted as legal, accounting or tax advice.