Buy These Stocks Before the Fed Raises Rates Again

your Daily Profit issue from Wyatt Investment Research Buy These Stocks Before the Fed Raises Rates Again By Steve Mauzy Monday, October 24, 2022 Federal Reserve officials meet on November 2. And they’re almost guaranteed to raise interest rates again. This is creating major shift in the markets. And it’s presenting a once in a lifetime opportunity to earn huge income – WITHOUT taking on big risks. That’s why I’m hosting an urgent briefing called [The Passive Income Blueprint.]( [Simply click here ASAP]( – I’ll reveal my 3 favorite income trades for TODAY. Interest rates are a big deal. They hold considerable sway over the value of your stock portfolio. But how much sway do they hold? We can let history serve as a guide. History shows some stocks perform better than others. Stocks with economically sensitive cash flows tend to outperform most stocks when interest rates rise. The group is populated with large-cap growth stocks: Facebook (NASDAQ: FB), Alphabet (NASDAQ: GOOGL), Salesforce (NYSE: CRM), and Netflix (NASDAQ: NFLX) can be slotted into this category. As for dividend stocks, moderation has proved a worthwhile attribute. Moderate-yield dividend growers tend to have stable cash flows. Their cash flows have historically been less sensitive to economic vagaries. These established dividend growers historically plugged along when faced with rising interest rates. McDonald’s (NYSE: MCD), Starbucks (NASDAQ: SBUX), Sysco Corp (NYSE: SYY), and Chevron (NYSE: CVX) are representative of the segment. [Secret Passive Income Blueprint to 10X Your Income:]( Today is your chance to cash-in real estate rent checks of $2,230… earn 9.6% with a government-back CPI Savings Account… collect 67% yields from Shadow Funds… and pull in 20% income from a ranch in Kansas. [Go here ASAP – the next deadline is October 28.]( As for high-yield stocks, specifically the pass-through entities (BDC, MLPs, and REITs), the bag can be mixed, but also profitable. REITs are popular high-yield stocks. Here, the odds favor equity REITs over their mortgage brethren. Equity REITs posted a cumulative total return of nearly 80% when the Fed raised its target for short-term interest rates from 1% in 2004 to 5.25% in 2006. Equity REITs outperform the S&P 500 over the period. Look to REITs with low leverage. These REITs should continue to post solid operating cash flow as interest rates move higher. Iron Mountain (NYSE: IRM) slots into the category. Master limited partnerships have proved their worth when interest rates rise. Returning to the 2004-2006 era, MLPs returned 38.7%, thanks in large part to distribution growth. My favorite MLP investment is an MLP ETF, the Alerian MLP ETF (NYSEArca: AMLP). Alerian owns 20 of the largest MLPs. It yields 7.5%. Best of all, you avoid the K-1 hassle at tax time. Other high-yield stocks can prosper as well (or at least hold up). Business development companies (BDCs) are worth considering because of their balance-sheet structure. Many BDCs carry variable-rate debt investments on the asset side. These investments are frequently financed with fixed-rate debt (on the liability side). When interest rates rise, income from variable-rate debt rises while the liability side remains constant. Voila, more net-interest income for the BDC. Ares Capital Corp. (NASDAQ: ARCC) is my pick of the litter. Roughly 87% of Ares Capital’s debt portfolio (and debt investments constitute 90% of the total portfolio) is floating rate. When interest rates rise, Ares Capital can adjust the interest rate higher on its loans, thus collecting more net-interest income. [Ares Capital’s 9.8% starting dividend yield]( only sweetens the deal. In the end, though, it all distills to intelligent diversification, as it always does. Want to get my top passive income ideas to BUY NOW? [Go here ASAP – I’ll be sharing my top trades.]( Good Investing, [Ian Wyatt] Stephen Mauzy Contributing Editor [Visit the Wyatt Research Website]( [Take a 7 day break from these emails]( [Unsubscribe from these types of emails]( [Manage your email preferences]( [Wyatt Investment Research] Disclaimer & Important Information [Wyatt Investment Research (“WIR”)]( owns and publishes the website WyattResearch.com, other web sites, and, through its subscription services, various investment newsletters, trade alerts, and other investment-related educational materials. Those publications are informational in nature – WIR is not your financial adviser and does not provide any individualized investment advice to you. You should perform your own independent research on potential investments and consult with your financial adviser to determine whether an investment is appropriate given your financial needs, objectives, and risk appetite. This publication should not be construed as an offer to sell or the solicitation of an offer to buy any security. None of the case studies, examples, testimonials, investment return or income claims made on WIR’s website or through its services is a guarantee of any income or investment results for you. WIR does not verify the income or investment results claims made in customer testimonials. Results for other customers may vary; for typical results, please see the Testimonial Support Page, linked below. Past success is not a predictor of future success. Trading in securities involves risks, including the risk of losing some or all of your investment. Hypothetical or modeled portfolio results do not represent the results of an actually invested portfolio and are not back-tested for accuracy under actual, historical market conditions. There can be tax consequences to trading; consult your tax adviser before entering into trades. For additional WIR disclosures and policies, please click the links below. [Terms of Use]( | [Privacy Policy]( [Testimonial Support]( | [Financial Disclaimer]( [Trading Policies & WIR Compensation]( [Unsubscribe]( | [Delivery Preferences]( --------------------------------------------------------------- This is a communication from Wyatt Investment Research. You are subscribed with the following email address: {EMAIL} If you believe this communication to be a mistake, please e-mail abuse@wyattresearchnewsletters.com with details regarding your situation, and we will be sure to promptly investigate your situation. Wyatt Investment Research 65 Railroad Street PO Box 790 Richmond, Vermont USA 05477