BondsOnline Advisor – August, 2011
By Stephen Taub
NEW in BondsOnline.com: – in depth credit rating analysis for Municipal bonds and energy sector corporate bonds. Ratings back to 2008: a must-have tool for income investors. FREE!
The BondsOnline Advisor strives to present you with income investment insights from analysts throughout the United States. Bonds, preferred stocks, real estate investment trusts, or master limited partnerships can be a part of a successful income portfolio – and BondsOnline and PreferredsOnline provide the “Income Investor Tools” to keep you informed.
Equity Strategies
It looks like the worry warts have taken control of the market. Even though Congress passed a debt-reduction package and lifted the debt ceiling, economic worries continue to sink stocks.
Wells Fargo points out in a recent note that the market’s tenor turned defensive as long ago as January 2011. However, even though the general market has taken on a more defensive stance in recent months, the last 30 years of history suggests that the current level of cyclicality versus defensiveness tends to result in a higher S&P over the next 12 months five-sixths of the time, the bank pointed out in its recent weekly commentary. “We believe that the results of the most recent leading indicators point toward continuing but modest economic growth,” Wells added.
UBS reassures clients it is constructive on stocks on the belief that well managed companies will continue to squeeze out strong profits. However, it does stress that any long-term upside requires a growth agenda. “From a stock market perspective, such a plan should result in higher stock multiples,” it adds. “From a corporate perspective, it should encourage risk taking and increased jobs creation.”
BofA Merrill Lynch recently told clients it is tactically defensive, warning that the biggest risk for equities is recession since a small minority expects a global recession in next 12 months. “Very little recession risk has been priced-in,” it recently told clients in a note.
Master Limited Partnerships
It appears that double digit returns are still on the radar with energy MLPs. We highlight 9 this month.
Citi recently lifted its estimates on Master Limited Partnerships that have exposure to natural gas processing by about 5.5% on average and those with exposure to NGL transportation & storage by 2.7% on average. The bank reviews the potential of eight this month in Yield and Income Newsletter.
REITs
We look at 8 high yielding mortgage REITs this month, plus JP Morgan Chase and Stifel Nicolaus review 4 more.
Special Situations
Tobacco stocks and several other high-yielding stocks are covered by UBS and Stifel Nicolaus.
Fixed Income & Preferreds
UBS downgrades one Trust Preferred (TRuP) and comments on the recent market volatility. And, what types of municipals to buy.
Special Report in PreferredsOnline - 11 Preferred Stocks that Still Show Value.
For a list of securities, target prices, and detailed comments, get the current issue of Yield and Income Newsletter through PreferredsOnline.
© 2011, BondsOnline and BondsOnline Group, Inc. Follow Us: Facebook Twitter LinkedIn
|
