Why investing in non-investment grade bonds, leveraged loans, and preferred stocks is potentially more compelling than investing in common stocks at present. Topics covered include: Why Howard Marks told institutional clients to sell stocks and buy high-yield bonds insteadThe contractual agreements comprising bonds, leveraged loans, and preferred stock give them an advantage relative to common stocksHow preferred equity exhibits attributes of both bonds and common stocksWhat is the expected return and risks for high-yield bonds, leveraged loans, and preferred stockHow do we invest in these three asset types Sponsors Delete Me - Use code David20 to get 20% off- To get 20% off Delete Me go tohttps://joindeleteme.com/david20 and use Code David20 Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code Show Notes Sea Change - Memo by Howard Marks Further Thoughts on Sea Change - Memo by Howard Marks Investments Mentioned SPDR Bloomberg High Yield Bond ETF (JNK) iShares iBoxx High Yield Corporate Bond ETF (HYG) Invesco Senior Loan ETF (BKLN) iShares Preferred Stock ETF (PFF) Virtus Seix Senior Loan ETF (SEIX) DoubleLine Flexible Income Fund (DFLEX) BlackRock Debt Strategies Fund (DSU) Barings Corporate Investors Fund (MCI) Related Content 397: How to Invest Based on Cycles 451: How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market 423: A “Safe” 6% Yield: The Case for Investment Grade CLOs How to Invest in Closed-End Funds Money for the Rest of Us Closed-End Fund Course See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We explore six impacts of higher interest rates on housing, capital projects, stock buybacks, excess returns for stocks, bonds, and other asset classes, and individual opportunity costs. Topics covered include: Where current interest rates standCentral banker predictions for how long cash yields will stay this highWhy housing is the least affordable since the early 1980sWhy new apartment building construction has collapsedWhat has been the excess return for stocks, bonds, and other asset classes when interest rates are higher and lowerWhy there will be fewer stock buybacks and how that can impact earnings per shareWhich alternative investments do better when short-term interest rates are higherWhy financial opportunity costs have increased and how that should impact our investment and other financial decisions. Sponsors Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code NetSuite – Get your free KPI checklists Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter. Show Notes Summary of Economic Projections—The Federal Reserve The Apartment Market Is Hitting a Construction Lull by Will Parker—The Wall Street Journal 30-Year Fixed Rate Mortgage Average in the United States—FRED Economic Data Americans Are Still Spending Like There’s No Tomorrow by Rachel Wolfe—The Wall Street Journal Honey, the Fed Shrunk the Equity Premium by Portfolio Solutions Group—AQR Companies ease off on share buybacks as rising interest rates push up costs by Nicholas Megaw—The Financial Times Related Episodes 384: Has a Commodities Bull Market Supercycle Started? If So, How Do You Invest in It? 435: Is It Better to Rent or Buy a House? 448: Where Are Interest Rates Headed Next? Insights from the Jackson Hole Symposium See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.