Barron advises savvy investors that the recent sale "has created a multitude of opportunities for both stocks and bonds that are among the most promising in recent years".
The financial publication recently offers its "Best Income Investments" for the New Year.
Barron offers high dividend stocks in the US and Overseas markets, Master Limited Partnerships, High Yield Bonds and Preferred Shares. "In these sectors, investors can earn returns ranging from 3% to 10% through individual stocks, mutual funds, exchange-traded funds and a group of closed-end funds hard hit. ", says the report.
"Our favorite group for 2019 is a group of MLPs focused on US energy infrastructure that has been struggling over the past two months due to falling oil prices. Large MLPs trade as energy stocks despite their low exposure to commodities. The benchmark MLP index, the Alerian Index, was down 19% last year, bringing it closer to its 2016 low and bringing it close to 9%. "
Barron's has also touted the Vanguard High Dividend Yield (VYM) ETF, which holds high-yield bonds such as Johnson & Johnson (JNJ), Exxon Mobil (XOM) and JPMorgan Chase (JPM), and recently achieved a return of 3 , 5%.
Barron's evaluated 11 different sectors and ranked them in order of preference.
At the same time, Goldman Sachs Group Inc. said investors should increase their holdings of cash, even with fears of a recession in the United States this year, which may be exaggerated.
With a risk-free rate of 2.4% on three-month Treasury bills, "cash is a competitive asset", with allocations close to the lowest level in 30 years for many investors, analysts said , including chief strategist David Kostin. , Said Bloomberg.
The bank recommended that investors reduce their holdings of bonds this year and continue to invest in equities. Although US stocks may be under new pressure, Goldman's strategists have stated that they expect "positive US economic growth to support continued earnings growth."
"There is a potential for further decline in the stock markets in the short term, even if the recent collapse of the stock markets does not lead to a recession," writes the strategists. "There have been four bear markets without a recession since 1946. During these episodes, the S & P 500 index has declined an average of 21% over an eight-month period. If the current episode follows this historic trend, the S & P 500 could still fall in the coming months. "
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