Dividend Investing Weekly: Further Gains in Bonds Will Be Tough to Come By

You are receiving this email because you signed up to receive our free e-letter Dividend Investing Weekly, or you purchased a product or service from its publisher, Eagle Financial Publications. [Dividend Investing Weekly] [Cash Machine]( [Quick Income Trader]( [Breakout Profits Alert]( [Hi-Tech Trader]( Further Gains in Bonds Will Be Tough to Come By by Bryan Perry Editor, [Cash Machine]( 07/15/2024 [Shark Tank’s Kevin O’Leary is Putting His Money Here]( If you have ever watched Shark Tank, you know Kevin O’Leary ("Mr. Wonderful") is very protective of his money. In fact, he expects to multiply his investments by at least 10x when he gets in... and the company Bryan Perry discusses in this video is exactly what "Mr. Wonderful" looks for. In fact, not only did Kevin invest his money in it, he also put his own personal team to work in the company. And Bryan calls this opportunity part of “the greatest wealth transfer in history.” To learn more, [click here now to watch this video.]( With last week’s encouraging Consumer Price Index (CPI) reading of -0.1% for June, the bond market caught a fresh bid that took Treasury yields lower across the entire curve. The two-10 spread is now -0.27%. While still inverted, the yield curve is flattening out with the Fed not even having started to cut rates. Bond prices are near four-month highs, despite a hotter Producer Price Index (PPI) report for June. Final demand increased 0.2% month over month in June (consensus 0.1%) following a revised no change in May (from -0.2%). The index for final demand, less food and energy (core PPI), was up 0.4% month over month (consensus 0.1%) after a revised 0.3% increase (from 0.0%) in May. On a year-over-year basis, the index for final demand was up 2.6% versus 2.2% in May, and the index for final demand, less food and energy, was up 3.0%, versus 2.3% in May. The key takeaway from the report is that the year-over-year rate for PPI and core PPI accelerated for the fifth month out of the last six with rising prices of services outweighing falling prices of goods in June. Assuming the economy grows at its current projected pace of 2.0% per the latest Atlanta Fed GDPNow release, this very sticky and inflationary “services” component to Core PPI looks like it might be tough to bring down much further. For June, prices for every line item within the services table, apart from transportation and warehousing services (-0.4%), truck transportation freight (-1.2%), loan services (-2.0%) and traveler accommodation services (-0.2%), were higher month over month. [If Americans Are Not Worried About Running Out of Money, They Should Be!]( According to the Survey of Consumer Finances (SCF), nearly half of all U.S. households have no money at all saved for retirement. Among those already retired, the savings rate is better... but still only $171,000 in 2022. Yet there is simple but little-understood solution to this looming retirement crisis. If investors move [quickly enough](, they can LOCK IN a regular source of extra income with annual returns as high as 11.1%, guaranteed for life. That’s 761% greater than the average S&P 500 dividend. What’s more, these payments are NOT affected by anything going on in the stock market or in other financial markets. There’s only one downside: this rare opportunity to lock in DOUBLE-DIGIT returns for life may not be available much longer. [Click here to find out more!]( Even though inflationary expectations have dipped recently, the lower Consumer Sentiment Reading of 66.0 for July released last Friday shows that consumers remain burdened by high prices. If the PPI stays higher for longer, it can indirectly impact CPI by affecting production costs and supply chains that ultimately get passed on to the consumer. Source: [www.bls.gov]( Hence, one can argue that if both PPI and CPI are not moving down in tandem with each other, then the Fed’s 2% target looks like a stretch without the economy sliding into a mild recession or something worse. So many of the goods and services we use related to the upkeep of our health, homes, cars, education, childcare, public transportation, insurance, legal, accounting and other white-collar services are priced at levels that are at all-time highs with little, if any, relief in sight. Assuming this is the big picture for most families and individuals, then we should all feel fortunate that inflation is sitting at 3%, and down from 9% two years ago. I think this is about as good as it’s going to get on the inflation front, again barring a sharp economic contraction of sorts. This implies that the yield curve may normalize where long-term rates finally get above short-term rates, but probably not by much unless the market loses faith in the Treasury’s ability to manage the current $34.9 trillion in federal debt, where longer-term rates would likely spike. At some point, federal revenues need to exceed government spending. Depending on the source, the U.S. national debt will exceed $40 trillion in four years to put debt-to-GDP at 130-160% from its current level of 122%. It got up to 132% during the pandemic, pulled back and is again resuming its upside trend. This assumes U.S. GDP will grow to $32 trillion from $25 trillion by 2028. [The stock poised to outperform]( Trader, it’s a huge week for Wall Street, but an even bigger week for your portfolio. If you know how, and where to look. Even greater than the recent 300% gains that Novavax saw, the artificial intelligence just found [1 stock poised to outperform everything.]( This hasn’t happened in over six months, so come see what the A.I. is showing us. It is exactly during these times of economic expansion that the government should be paying down its debt in the event of another economic shock. However, both the bond and stock markets have been functioning well with the ever-growing mountain of debt as the S&P 500 cleared 5,600 for the first time in history last week. Lower Treasury yields also tend to weigh on the underlying dollar currency since they aren’t paying out as much. The dollar index has fallen 2% this month in reaction to the notion of lower interest rates on the horizon. So, it stands to reason that seeing the yield curve flatten out at 4% and staying there to keep the dollar stable while maintaining a sustainable appetite for soaring U.S. debt offerings to global buyers makes sense. To summarize, it would seem that Goldilocks would be quite happy with 2% GDP growth, 3% inflation and 4% interest rates. To maximize this probable backdrop for interest rates and the bond market, my [Cash Machine]( high-yield advisory service is a proven path forward for thousands of investors seeking a double-digit-percentage portfolio yield. The current blended yield for the combined 30 asset holdings in the model portfolio is 10.20%. To learn more about how to put this high-powered income-generating service to work in your portfolio, [click here](. Sincerely, [bryan-perry-sig] Bryan Perry Editor, Cash Machine Editor, Premium Income PRO Editor, Quick Income Trader Editor, Breakout Options Alert Editor, Hi-Tech Trader Editor, Micro-Cap Stock Trader About Bryan Perry: [Bryan Perry]Bryan Perry specializes in high dividend paying investments. This weekly e-letter combines his decades-long experience in income investing with a simple, easy-to-read format that investors of all stripes can work into their portfolios. Bryan also serves as Editor of these services: [Cash Machine]( [Premium Income PRO]( [Quick Income Trader]( [Breakout Profits Alert]( [Hi-Tech Trader]( and [Micro-Cap Stock Trader](. About Us: Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. 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