Due to the fear of capital loss, investors and fund managers worldwide, and especially in America, are putting money in bonds that yield very little, or even zero or negative in real terms. Is it possible for bond yields to stay this low for much longer, and can investors go anywhere else to get better returns?
We’re more than happy to provide you with answers to help you get better yields on your investments, so Wealth Research Group spoke with Jordan Goodman, who is known far and wide as America’s Money Answers Man and whose newsletter and other wealth-building resources can be found here.
A nationally recognized expert on personal finance, Jordan Goodman is a regular guest on numerous radio and television call-in shows across the country, answering questions about personal financial topics. He appears frequently on The View, Fox News Network, Fox Business Network, CNN, CNBC, and CBS Evening News.
For 18 years, Jordan was on the editorial staff of Money magazine, where he served as Wall Street correspondent. While at Money, he reported and wrote on virtually every aspect of personal finance. In addition, he served as weekly financial analyst on NBC News at Sunrise for 9 years and the daily business news commentator on Mutual Broadcasting System’s America in the Morning show for 8 years.
Courtesy: Jordan Goodman
Furthermore, Mr. Goodman is the author/co-author of 13 best-selling books on personal finance, including Master Your Debt: Fast Profits in Hard Times, Everyone’s Money Book, Master Your Money Type, Barron’s Dictionary of Finance and Investment Terms, and Barron’s Finance and Investment Handbook.
He has also written 6 special focus editions of Everyone’s Money Book on College, Credit, Financial Planning, Real Estate, Retirement Planning and Stocks, Bonds and Mutual Funds.
In addition to being a prolific writer, Jordan is also a speaker and seminar leader on personal finance topics for business executives, students, associations, investment clubs, employees, and others.
Wealth Research Group took the time to consult with Mr. Goodman regarding his outlook on the so-called “risk-free rate” of Treasuries going forward. According to Jordan Goodman, he believes that interest rates are going to stay low for quite a while, even though America and other nations continue to have massive deficits.
As Mr. Goodman observes, there are around $10 trillion worth of bonds selling at negative yields in Europe today. With Brexit and the European Union breaking up, according to Jordan Goodman, that’s a deflationary event, which means that interest rates can go even lower in Europe.
Therefore, compared to the interest rates we see in some other parts of the world, America’s rates actually look pretty good, according to Jordan Goodman. He predicts that America’s interest rates will stay in their current range (around 2.5% for the 10-year U.S. Treasury bill) for a while.
Courtesy: Jordan Goodman
We’re adding a trillion dollars per year to America’s deficit that’s already a $22 trillion mound of debt, according to Jordan Goodman, but as long as people around the world see the U.S. as a safe haven, they’ll continue to pour money in, which will keep U.S. Treasury interest rates down for a long time.
The world has never had a situation like this before, according to Jordan Goodman, where we have trillions of dollars trading at negative interest rates. And it’s only going to get worse: the European central bank, for example, has been injecting enormous amounts of money in an attempt to stimulate the European economy, yet their economy remains weak and we still see negative interest rates.
Given America’s and the world’s propensity to keep bond yields ultra-low, Jordan Goodman specializes in providing ways for investors to get more attractive yields than bonds. One method would be rental real estate, where you own homes, apartments, mobile homes, storage facilities, etc. that produce income without having to worry about the property values fluctuating too much.
Courtesy: Jordan Goodman
A related but different income source would be hard money lending in commercial real estate, where an investor would lend money against a specific piece of property, and this can generate a yield of around 10%. Another possibility is preferred stocks, which are a publicly-traded alternative to bonds that can yield 5-6% in today’s market environment.
Two more alternatives to low-yielding bonds would be publicly-traded REITs or real estate investment trusts, which can often yield 7-10%, and MLPs or master limited partnerships, which profit from the throughput in oil and gas pipelines and can provide yields of around 8%.
You’ll learn a great deal about how to get superior yields through alternative investments in Wealth Research Group’s informative interview with Mr. Jordan Goodman. And for even more of Mr. Goodman’s ideas and resources to help you generate consistent investment income, you can access his wealth-building portal right here.
Wealth Research Group wants to ensure that you have access to the world’s finest educational materials so you can maximize your investment returns. That’s why we’ve released a number of special reports for you to download today, including our blueprint to wealth-generating Warren Buffett-style dividend investing strategies, our guide to becoming wealthy by learning from the world’s most successful billionaire investors, and our guide to building the ultimate stock watch list so you’ll be prepared to pull the trigger when the time comes.