Bargains in Plain Sight – Get Creative with Your Investments
Dear Wealth Watch Reader,
The market is looking bullish again even as inflation concerns persist.
Today I want to temper the angst by showing you a unique way to capture gains from bullish market sentiment AND protect yourself against the down days.
It’s by far one of my favorite plays right now.
Read on below…
P.S. Markets are closed Monday in observance of Presidents Day. As such, there will be no daily issue for Wealth Watch Monday.
We’ll be back in full swing with your next daily issue on Tuesday, when markets reopen.
Cash-In on this High-Yield Energy “Tollbooth”
The stock market shook off Wednesday’s surprisingly strong inflation report, opening to the downside and then bouncing back.
That’s a good bullish sign.
Still, interest rates moved higher across the board, and the trend isn’t over.
That’s why you’ve got to be creative in your search for safer high-income investments.
For example, a closed-end fund (CEF) is a great idea worth looking into.
CEFs offer strong and steady income. And one of my favorites that I’m offering today is currently trading at a discount based upon today’s overpriced market.
Energy stocks are notoriously volatile, but there’s a relatively conservative way to play this sector: by focusing on a certain kind of energy company, one that offers fairly stable high yields and is more resistant to the ups and downs in oil prices.
I’m talking about energy pipeline companies. These firms aren’t wildcatters out drilling for oil in the Permian Basin or the Gulf of Mexico.
They specialize in transporting oil and natural gas through their network of pipelines at contracted prices that are somewhat insulated from the constantly fluctuating prices of crude and natural gas.
Think of it as owning a tollbooth on the energy transportation highway.
One investment that’s at the top of my watch list right now is the Tortoise Pipeline & Energy Fund (NYSE: TTP).
This CEF holds 59 leading energy transport companies, mainly oil and gas pipeline firms, including: Enbridge Inc., TransCanada Corp. and the Williams Cos., to name a few.
Best of all, TTP pays you a rich 9.2% annualized dividend yield, AND it’s available now at a 4% discount to its net asset value (NAV).
That means you could be sitting on a 13.2% potential gain (9.2% yield + 4% discount) even if nothing happens over the next year!
My advice to you is simple.
Don’t reach for yield with investments without doing your homework. You could get burned badly if interest rates keep rising.
Instead, get creative with your income investments by finding bargains hiding in plain sight.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch
Editor’s note: Remember… Markets are closed Monday in observance of Presidents Day. As such, there will be no daily issue for Wealth Watch Monday.
You can expect your next issue on Tuesday, when the markets reopen.