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In case you missed it, last week the Fed fired a warning shot across the bow of investors who’ve won the bet, so far, the stock market would enjoy a V-shaped recovery and the economy would follow suit.
No, the Fed didn’t upset the applecart on Wednesday. The market tested itself on Wednesday when fear of rapidly rising virus spikes in Arizona, Texas and Florida triggered profit-taking.
The Fed didn’t upset the market on Thursday either. It actually helped stocks rally on the heels of Wednesday’s selloff when it announced all its children, the banks it shepherds, all passed their stress tests.
Banks rallied nicely on Thursday as investors cheered the good news.
Everyone knows the Fed’s manipulated interest rates down so low for so long there are no decent yielding investments in the fixed income market unless you’re willing to pay up for junk bonds.
But that doesn’t mean there aren’t great yielding investments readily available in other markets.
I’m talking about the stock market. Lots of companies pay dividends to their stockholders.
Some of them pay fat dividends, earn plenty of money regularly to keep paying them, and offer a kicker called appreciation.