Posted At : January 7, 2010 2:11 PM
Many investors continue to be plagued by confusion and paralysis. It seems to be consensus that the market is in for a drubbing sometime this year. Well, the fact that it is consensus tells us that it will not happen. More importantly however is that investors must take advantage of what the markets give when they give it. Avoiding proper investments because the market might get hammered is like not making your bed in the morning because it will only get messed up later. The key is to get very highest return with the least amount of risk possible. My favorite phrase of be the expert or hire one still rings true, and a good advisor’s job is to find exceptional opportunities for their clients no matter what the market while also providing protection and peace of mind. In this new world economy, the survivors will prosper greatly while the weak will suffer. This holds true for investor and corporation alike.
In today’s difficult market environment, a Real Return investment approach can achieve just that. Currently, there is an above average opportunity in investing for “Real Returns” through dividends and income. MLP’s, Preferred stocks, REIT’s and short-term corporate bonds right now have great yields, which give them downside protection. These are ideal for practically every investor as well as CD buyers. In particular, there is currently a particularly exceptional opportunity in MLP’s, as many provide very high yields of 8-12%, most of which is tax free, capital appreciation and downside protection. Although many are significantly higher, they still likely have a long way to go. Selectivity is the key.
Regards -Keith Springer