We do what we can to control our lives, and to the extent that we succeed, we can reap great rewards. As a natural progression, we seek to control things beyond ourselves—even the world itself, but in most cases, the world pays our efforts no mind, and goes and does its own thing. We might expect some consistency in the world’s behavior, but at least as far as the economic world is concerned there really isn’t any.
For years, you could easily beat market returns simply by owning energy MLPs, but then came the oil crash of 2014. If you moved your money into high-yield healthcare stocks, banking on rising spending under Obamacare, you likewise had the world at your feet, at least for a month or two.
If you made market bets based on policies advocated by President Trump, you soon found that the name of that game was “anything goes.” If you were lucky enough not to bet on infrastructure spending or an Obamacare repeal, but instead banked everything on a big tax cut, congratulations for correctly seeing the future. Hopefully your perspicacity is reflected in glowing market returns, but that hasn’t been the case for everyone. Many predictions about how the market would respond to a tax cut were either wrong, or are simply late in arriving which, given our comparatively short human lifespans, is often the same thing.
Today, I’m going to provide what I hope proves an optimal mix of high-yield stocks in different industries. Strange as the landscape now looks, I’m going to focus on where we are now, since I’m at a loss to explain exactly how we got where we are, and I don’t pretend to know where we are headed next. As always, remember to treat these ideas as just that, ideas, and do your own research before making any investment decision.