SPYD, SPHD: Dividend Gives S&P 500 Wings

Summary

• We've witnessed such a quick and sharp correction in the stock market that the S&P 500 nearly moved from bear-market to bull-market in a matter of weeks.
• Nonetheless, there are still plenty of signs suggesting that this rapid move isn't going to last much longer, therefore we see no reason to back off from our defensive approach.
• Over the past year, dividend- (and value-) oriented have substantially outperformed non-income focused (surely growth-oriented) S&P 500 ETFs.
• Speaking of "defensive approach", generating more income out of your investments can give your portfolio not only wings but less (extreme) swings.
• Putting more emphasis on an income-generating portfolio will result in a healthier income/expenses balance, lower volatility, and possibly a better return.
• Looking for a helping hand in the market? Members of Macro Trading Factory get exclusive ideas and guidance to navigate any climate. Learn More »

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of FUNDS MACRO PORTFOLIO ("FMP") AND ROSE'S INCOME GARDEN ("RIG") either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.