This guy is the right person to keep rates low

This guy is the right person to keep rates low

a lot longer! The feds have forecast that higher interest rates will be with us through 2026, the Fed said in a statement. The hope was that rates would drop someday in 2024, which caught many investors by surprise.

I'm not convinced the Fed can keep interest rates high until the end of 2026 without breaking anything in the economy, as I mentioned last week.

Despite inflation, it's still important to focus on income-producing investments for your portfolio, as inflation is still above 4.0%.

As always, one of my favorite methods for generating income is through closed-end funds.

CEFs are a type of mutual fund that issue a set amount of shares through a single initial public offering to raise capital for its initial investments. The shares can then be bought and sold on a stock exchange, but no new shares will be created and no new money will flow into the fund.

When you can buy shares of a CEF at a discount to the NAV, this means that you can purchase shares of a CEF at an actual discount to the NAV.

With the ability to buy shares of CEFs for a discount to their NAV, CEFs can be a valuable option for investors looking for a professionally managed income-producing portfolio.

This week, I'm watching the Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund, a closed-end fund that invests in a diversified portfolio of common stocks and writes call options on one or more U.S. and foreign indices on a substantial portion of its common stock portfolio to generate current earnings from the option premiums.

The fund's portfolio comprises 287 equity holdings with household names such as Apple Inc., Microsoft Corporation, Inc., LVMH Mot Hennessy Louis Vuitton SE, and Nestlé SA, rounding out the top five positions with weightings of 6.41%, 5.61%, 3.09%, 2.29% and 2.20%.

As of Q2 2023, 96% of the stock portfolio has call options written, with an average of 16 days until expiration and strike prices that are, on average, 0.30% out-of-the-money.

BCAT is trading at a significant discount to its NAV at the current price, but it also provides a healthy 9.09% yield. This is more than double the rate of inflation and nearly double what you can get in most high-yielding money market accounts.

Be careful out there and keep an eye out for more opportunities later in the week.

The post This stocks are Yielding over double the inflation rate right now appeared on total wealth.

Here Are 10 ways to earn 10% or better on your money Every quarter is great. But it's possible to get even more out of your shares. You can easily beat inflation and collect regular income to save a lot of money. There are no intricate trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks - passive income redefined. In 1982, he ran his first hedge fund from his seat on the Chicago Board of Options Exchange. When options on the S&P 100 began trading on March 11, 1983, Shah worked as a market maker in 'the pit'. The work he did laid the foundation for what would eventually become the VIX - now one of the most widely used indicators globally. After leaving Chicago to lead Lloyd's TSB's futures and options division, Shah moved to Roosevelt & Cross Inc., an old-line New York boutique firm. He originates and established a packaged fixed-income trading desk and established that company's 'listed' and OTC trading desks. In 1999, Shah founded a second hedge fund, which he ran until 2003. Shah's extensive network of contacts includes the biggest players in Wall Street and in international finance. The contacts given him the truth - when others only get what the investment banks want them to see.