Let's Be Crystal Clear: Low Rates, for Longer
Chairman Ben Bernanke is CRYSTAL CLEAR about holding rates lower for longer. Consider his speech to economists gathered in Washington last night:
We are reminded of the scene in A Few Good Men, where Jack Nicholson's Col. Jessup berates the younger Lt. Daniel Kaffee portrayed by Tom Cruise for failing to understand the code of behavior on the Guantanamo base:
Today, more evidence as to WHY Mr. Bernanke is so clear about keeping rates low for a "considerable time." Consumer prices fell 0.1 percent in October, following several months of declines. Deflation, not inflation, is his concern.
Investors searching for yield won't get any help from the Fed, anytime soon. So today we're highlighting three ETFs which generate dividends of 6-11 percent. All are highly liquid and span a number of sectors. In the current environment, where GDP is just 2.8 percent and corporate earnings growth has slowed to an estimated 6 percent, we think the appeal of these yield vehicles is crystal clear.