How to Adjust Your Portfolio for Falling Bond Yields

A brief collapse in bond yields around the world hit markets hard Thursday.

The recent catalyst for falling yields was the European Central Bank’s (ECB) announcement Thursday it would tolerate up to 2% annual inflation over the “medium term” — essentially ignoring its current inflation target of just below 2%.

That might not sound like a big deal, but it represents the first major policy shift for the bank in two decades and it spooked investors. Essentially the ECB is going to break its inflation target, and they’re going to do nothing about it.

So, we can thank the ECB for accelerating the collapse in global bond yields, with German 10-year yields down three basis points on the news.

The yield on the U.S. 10-year Treasury note dipped to 1.25% on Thursday, the lowest rate since February, but quickly rebounded this morning to 1.35%.

The Federal Reserve is also allowing inflation to run higher than the normal 2% target, but the Fed has been clearer than the ECB. Our Fed has raised its near-term inflation target and said the inflation we’re currently seeing is transitory. And of course, in the U.S., we have positive interest rates, while in Europe, they have negative rates.

But the Fed’s priority right now is to fix unemployment, because we’re still missing around 8.6 million jobs since the pandemic started.

In the meantime, falling interest rates make bonds less attractive, which I see as unbelievably bullish for stocks, especially for a select group of stock I found with my

Accelerated Income Project 2021. These stocks are also great for those looking to catch up on their retirement or make extra income.

Live the Life You’ve Always Dreamed

So many investors have spent years getting lousy market returns and now they need a strategy to catch-up to live the life they’ve always dreamed.

With The Accelerated Income Project 2021, I’ve designed it so you can get the income you need on a regular basis. And no: It doesn’t require using options or any “trick” investing.

Now, a lot of folks get out of stocks and into bonds when they retire, because they think they’re safer.

But let me tell you, that’s the wrong way to go. And that would be a dangerous approach now, because it relies on short-term thinking.

The bottom line is, stocks have consistently outperformed bonds for decades.

So, when you look down the long road of retirement, do you want less money? Or more money?

What I uncovered with my Accelerated Income Project 2021 is the best of all worlds: the potential for large “paychecks” in a short time. And it’s a strategy you can apply consistently. That’s because it works by targeting high-quality companies – the ones that grow and profit when others simply cannot. Money flocks to these stocks, especially in a market that will grow more focused in the coming months, as I anticipate.

Apply my strict criteria, over and over, and you’ll produce much fatter checks than you’ll receive anywhere else.

Note: On Wednesday and Thursday, I released flash alerts with two new buys, and you’ll get full details by trying The Accelerated Income Project today.

I’ll detail these two new buys, a commerce media platform and a high fashion designer and retailer. They may sound very different – but both have the fundamentals required to keep them firing on all cylinders.

Both companies have been beating expectations and seeing Wall Street analysts revise future expectations higher. This is a reliable signal of a big earnings surprise which can send a stock soaring following its earnings beat – and I don’t want you to miss out.

That’s especially valuable when so many other companies are struggling with profitability – and especially for stocks I found with my  Accelerated Income Project 2021.

So, now that the right companies are pulling away from the pack, now’s just the right time to embark on our new hypergrowth initiative.

Signed:
Louis Navellier

Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

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