Many top strategists, including Rick Reider of BlackRock, favor stocks over bonds. We look at those analyses plus other news about income investing.
BlackRock’s Top Bond Strategist is Actually a Bing Believer In Stocks (CNBC, October 25)
Rick Reider, who runs fixed income investing for BlackRock, talks about why he currently favors stocks rather than the fixed income market. “I think people look at equities wrong. They’re not factoring in other dynamics around it.” He also weighs in on the possible candidates to chair the Fed and how this could impact the market.
Approaching the Dividend Space (Barron’s, October 24)
With fixed income investments delivering historically low yields, dividend-focused ETFs are gaining traction. The main strategies usually fall into one of these categories: high dividend, dividend growth and quality dividend. “It is important to note that high dividend, dividend growth, and quality dividend strategies are distinct approaches and demonstrate significant differences in desired outcomes, fundamentals, and sector exposures.”
These 18% Dividends Are As Risky As They Look (Forbes, October 4)
Exchange-traded notes (ETNs) “are more like a debt that issuers release that’s tied to the performance of a particular asset class.” ETNs offer high yields, but “buying these funds is more like speculating than investing. If you’re bullish on a particular asset class…and want to make a short-term bet, they might be worth a look.”
