mplaut

The State of Financial Markets and U.S. Dollar in 2009, Part II

IMO, the conclusion of this analysis is to look for yield. If you buy a business that has a solid dividend or distribution that will continue whatever happens in the markets as far as the investment eye can see, then you have a satisfactory investment. An eventual recovery will bring price rises as well, but that is just gravy. If the price rises are delayed, you can be comforted with the steady yield checks.

A lot of blue chips have high yields, but in my opinion the MLPs of the energy sector are very attractively priced with very high yields. Many are thoroughly hedged and should be able to keep up their distributions even if energy prices do not rise for quite some time.

Disclosure: long LINE