Lock in Today’s High Yields Before They Go Away

[ETF Daily News]( August 30th, 2023 SPONSORED AD [17% Dividend Payer: Access Details Now]( These 4 stocks will pay you 4 checks every single month... and their dividends are only getting bigger. One currently pays a massive 17% yield with its highest dividend payout in 15 years. [Click here now to access the ticker symbols and research behind these incredible "must-buys" right now.]( [Lock in Today’s High Yields Before They Go Away]( The inverted yield curve has investors and savers focused on short-term investments like money market funds because of their high yields. However, when the Fed starts to lower interest rates, the yields on money market funds will also decline. That’s why you need to act now to lock in today’s high yields. Let me show you how… Currently, interest rates show an inverted yield curve. That means short-term rates are higher than long-term rates. With a normal yield curve, longer-term rates will be higher than short-term rates. We get an inverted yield curve because the Federal Reserve controls short-term rates by setting the fed funds rate. Long-term rates are determined by the trading markets, primarily during government debt auctions. The Fed uses its control of short-term rates to control the inflation rate. Longer-term rates are the market’s prediction of where interest rates will be in the future. When the yield curve inverts, investors can expect interest rates will eventually turn lower. The chart below shows that short-term rates are above 5.5%, and that out at ten years, the Treasury note yields 4.3%. It’s easy to see why investors are piling money into money market mutual funds to earn the current 5.5% yields. However, those high yields may not last, and prudent portfolio management guides you towards owning some long-term investments, so you want to lock in today’s rates to continue to earn attractive yields, even if interest rates fall over the next couple of years. I recommend using the Invesco BulletShares ETFs for bond investing to set up a “bond ladder” of these funds. The ladder approach lets you lock in long-term rates and have money maturing each year that you can invest at current rates. The Invesco website has a[ bond ladder tool]( that lets you select which funds you want to own, and shows you the expected returns. Each BulletShares ETF owns a portfolio of bonds maturing in the specified year. By December of each year, all of a fund’s bonds have matured, and the shares are redeemed for cash. Here is a five-year ladder using the investment grade corporate bond ETFs. Also available are… Continue reading at [INVESTORSALLEY.com]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This email contains a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Stock News users. Stock News is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Stock News, and Stock News disclaims any liability for or arising from such statements and opinions. You are hereby advised that Stock News is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2023 ETF Daily News, part of StockNews.com - POWR Stock Rating, Market Outlook & Investment Insights Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019