Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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A Safe, 14.4% Yield Backed by Uncle Sam
Is Now for the Taking |
[http://www.streetauthority.com/includes/article-top-ao.htm]Published:
March 4, 2009
Pop quiz:
Who's the most credit-worthy borrower in the world?
Seven U.S.
companies have "AAA" credit ratings, the highest available
from Standard & Poor's. Among these titans of industry are
such names as Johnson & Johnson, Microsoft and Berkshire
Hathaway.
But one --
and only one -- entity is even more highly rated.
Your Uncle
Sam.
He's never defaulted. He's
never made a late payment. And even though we joke that some
companies print money, the U.S. government actually does,
and it's among the soundest currencies. The U.S. government
-- supported by your tax dollars -- is the most
credit-worthy borrower in the world.
So if the Treasury backs
your debt, it's backed, no questions asked. In fact, if you
look at any bank's quarterly report to the FDIC, you'll see
that it actually subtracts the value of any
government-backed debt from its past-due loans. That's not a
bailout thing, they've always done it. If Uncle Sam says
he's going to pay, he's going to pay. Send the bill to
Washington.
Just so we're 100% clear,
the point I'm trying to make is that absolutely nothing
beats a U.S. government guarantee. The only two things more
certain are death and taxes.
The problem is that this
guarantee doesn't pay much. There's no risk, so there's no
reward. A two-year T-bill doesn't even pay 1%. So if I told
you about a security with a government guarantee that was
yielding nearly 15%, you'd jump at the chance, right?
I mean, that's a better rate
of return than Warren Buffett got from his recent sweetheart
deals with Swiss Re (OTC: SWCEY), General Electric (NYSE:
GE) and Goldman Sachs (NYSE:GS).
That's a better rate of return than the long-term average of
the S&P.
Here's how it works: A
company buys long-term securities. Now, the longer the term,
the more risk, so to mitigate that downside, the company
only buys securities that have -- wait for it -- a
government guarantee. So now, instead of buying long-term
securities with significant credit risk, the company is
buying securities with functionally zero credit risk.
To pay for these securities,
the company borrows money, but only for the very short term.
These loans are made at very low rates. Result: The company
borrows at a very low rate and lends at a relatively high
rate -- and pockets the spread.
Remember that wisecrack we
made about printing money? This company does it. And since
it is structured as a real estate investment trust, it can't
keep the money around. It is legally obligated to pay the
money to its shareholders in the form of dividends. And
that's how Annaly Capital (NYSE: NLY) is yielding 14.4%.
Annaly's assets are
short-term obligations that mature in less than 10 years,
and all are backed by the full faith and credit of the
federal government of these United States. If you're looking
for a rich, double-digit return -- and the strongest
guarantee available, then these shares are for you.
Many Happy Returns.
[http://www.streetauthority.com/includes/editor-profiles-ao.htm]
P.S.
Readers of Paul Tracy's Market
Advisor first read about this
winner in November 2005 and have
since achieved total returns of
more than +50%. If you missed
out on these gains, don't worry
-- we're uncovering plenty of
profit opportunities just like
it... including a European
liquor distributor trading at a
forward P/E of 4.6 and expecting
double-digit volume growth next
year in one of its key foreign
markets. To get the name of this
stock, as well as a steady
stream of Paul's investment
ideas each and every month, be
sure to check out his Market
Advisor newsletter.
Check it out right here.
Disclosure: Paul Tracy does
not own any of the stocks
mentioned in this article.
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
actually helps some investment or another.Your investing life can
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Go here to learn about Amy's simple investing strategy.
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