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Well, that was a month to forget, with the S&P 500 SPX falling 4.8%,
the worst September in a decade.
It’s been a tough decade, not just a month, for income investors with interest rates so low. Now, income investors face not only low rates, but high inflation. It is therefore not easy to find places to invest for sources of income rather than aiming for the moon.
Adam Kramer, portfolio manager at Fidelity, says preferred stocks and floating rate loans are less likely than fixed income investments to lose value in an environment of inflation and higher interest rates. In an article posted on the fund manager’s website, he said that major limited partnerships, typically oil and gas pipelines, pay some of the highest returns and, according to Kramer, are poorly valued by the market. Likewise, clean power generation companies tend to operate solar and wind power projects.
Kramer also rates real estate investment trusts – and mentions casino and shopping center REITs as having COVID issues reflected in their prices. Finally, he mentioned value stocks that pay dividends, like oil producers and gold miners.
While Kramer didn’t mention individual investments, a review by the Fidelity Advisor Multi Asset Income Fund, of which he is the lead manager, shows holdings through the end of September. The fund’s main equity investments included metal streaming company Wheaton Precious Metals WPM,
Newmont NO gold digger,
and the oil company DHT Holdings DHT,
Preferred shares include thermal power supplier Babcock & Wilcox, investor Volkswagen Porsche Automobil Holding, investment bank B Riley Financial and trading real estate company Brookfield Property Partners.
The fund invests in the wood fiber processing master limited partnership Enviva Partners EVA,
as well as Smart SRU.UT,
the Canadian Shopping Mall REIT.
Table
People don’t really talk about the New York Stock Exchange NYA,
index – an index of all the companies listed on the Big Board – but Bank of America has an interesting annotated chart of it. At the moment, it is said that we are in the “summer consolidation” phase.
The buzzing
Politics continued to take center stage, as House Speaker Nancy Pelosi delayed a vote on infrastructure while West Virginia Senator Joe Manchin called for the size of the social spending plan or reduced from $ 3.5 trillion to $ 1.5 trillion. The issue of the debt ceiling still looms.
It’s a big day on the economic front, with the Federal Reserve’s preferred measure of inflation, the PCE price index, due for release, along with consumer spending and personal income at 8:30 a.m. ‘East. The closely watched Institute for Supply Management manufacturing index is due at 10 a.m., as is construction spending data, with automakers posting their monthly sales throughout the day.
Merck MRK,
and Ridgeback Biotherapeutics Said Their Oral Antiviral Reduces The Risk Of Hospitalization Or Death From COVID-19 In A Phase 3 Trial. Merck Said It Plans To Submit An Emergency Use Authorization Application to the Food and Drug Administration as soon as possible.
Zoom Video Communications ZM,
and Five9 FIVN,
They called off their multibillion-dollar merger on Thursday, after Five9 shareholders voted against a deal that was under investigation by the US Department of Justice. Five9 separately announced an analyst day in November to discuss the company’s strategy and outlook.
The market
Futures on the S&P 500 ES00,
and Nasdaq-100 NQ00,
were coming out of session lows as the opening approached. The 10-year Treasury yield TMUBMUSD10Y,
slipped to 1.49%.
Random readings
Reruns of “Seinfeld” landed on Netflix NFLX,
but Jerry Seinfeld says a reboot of the series would be sad.
Pop singer Shakira says she fought a pair of wild boars.
Talk about a mixed bag – a man died before cashing in the winning lottery ticket he was carrying in his wallet.
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