Michael Brush: Grab these 2 funds with rich 11%-12% yields while you can

by | Nov 11, 2023 | Stock Market

With much of the U.S. stock market in a correction there are plenty of attractive stocks to consider. This is especially true in income investing. The shares of some yield-oriented closed end funds (CEFs) have fallen so much, several of them now offer 10% payouts or more. If you invest for income, consider taking advantage of these rare opportunities.

Of course, there’s a chance you could lose money on these rich yield plays if stock prices decline. So, you don’t want to put all your eggs in these baskets, as a yield investor.  Strive to guard against capital depreciation from yield-stock declines by focusing on high-yield stocks that insiders are buying in size. I also think we have seen the end of heavy bond selling which increases Treasury bond yields and therefore pushes down the shares of stock market yield plays. (The shares have to decline to keep their yields competitive.)  Here’s why I think Treasury yields are probably not going back up.  First, a lot of the heavy bond selling that drove down Treasurys and spiked yields was due to institutional investor tax-loss selling. Insitutions have to finish their tax-loss selling by the end of October …

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