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Starting in late 2022 and through the end of 2024 stocks witnessed a majestic bull run driven primarily by the Magnificent Seven, or Mag 7 stocks (MAGS). An additional boost came at the end of 2024 due to
The Tide Is Changing, Be Prepared With CLOs To Keep The Income Streaming In
Summary
- The Magnificent Seven stocks led a bull run from late 2022 to 2024, but 2025's market correction reveals vulnerabilities, offering opportunities in high-yield CLO equity funds.
- CLO equity funds, like SPMC, CCIF, and OCCI, provide high-yield income uncorrelated to stock market performance, making them attractive during market downturns.
- SPMC, new in 2024, has increased distributions thrice, showing strong performance and resilience, yielding about 14% despite broader market selloffs.
- CCIF and OCCI, though newer and less covered, offer high yields and potential for strong returns, with CLO equity investments proving resilient in high-interest environments.
Now retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon Runyon
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ECC, CCIF, OXLC, OCCI, SPMC 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.
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