A Contrarian Take on High-Yield Plays

The high-yielding real estate investment trust (REIT) and energy master limited partnership (MLP) sectors have taken it on the chin over the past three months as interest rates have risen sharply. The 10-year Treasury yield is quickly approaching the 3% level. So, I am taking this opportunity to add to my allocation in both sectors.

Stocks within these and other high-yielding sectors have declined 10%, 20% and even 25% in reaction to rising rates and are offering much more attractive entry points for income investors than they were three months ago. I also believe interest rates will plateau or pull back over next few months as I just don't think our anemic economic and job markets can withstand higher interest rates....451 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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