The Fed has created a massive crisis for income investors… their policies have led to the lowest interest rates and yields in market history
Thanks to several rate cuts in 2019, the average savings account pays 0.09% a year now. And even if you took on more risk and bought junk bonds, you’d only collect about 5.5%.
Of course, lower interest rates aren’t all bad news. The cost of borrowing is cheaper, which can add fuel to the economy and market. Stocks wouldn’t be at record highs if not for Fed intervention in 2019, I’d argue.
But record-high stocks also means record-low yields. The price of stocks have increased way faster than dividends, which makes it extremely tough for income investors.
Source: https://www.multpl.com/s-p-500-dividend-yield
So unless you have millions of dollars, it’s impossible to generate a livable income from traditional investments… so you need to get creative.
And that’s the problem — most people aren’t able to stash away millions before they hit retirement age.
According to a report from the Federal Reserve Board, half the potential retirees in the country have $5,000 or less saved. Even more shocking, 40% of Americans would have to sell their car just to cover a $400 emergency expense.
That’s probably not your situation, but if your goal is to generate a consistent income, I doubt dividends or interest will get the job done for you in this environment.
Which is why I love what my friend and fellow trader Rob Booker just did.
He just flew down to a small town in Alabama to show regular Americans how easy it is to generate hundreds or even thousands in weekly income using a simple strategy.
It’s not a buy-and-hold strategy, but it’s not much more complicated either.
If you want to get all the details of the strategy — plus watch the shocking footage of Rob’s trip to Alabama, go here.
I don’t want to ruin any surprises, but Rob tells me the cops had to get involved…
Roger Scott
WealthPress
