Early Friday futures suggest stocks will start December on a cautious note. The last month of the year tends to be positive for Wall Street, though it will be some feat if it can beat November’s 8.9% jump for the S&P 500
SPX.
Equity investors have reveled in the sight of U.S. benchmark bond yields
BX:TMUBMUSD10Y
dropping from more than 5% in October to roughly 4.3% amid hopes cooling inflation means the Federal Reserve will start cutting interest rates by the spring of next year.
Indeed the 53 basis-point fall in 10-year borrowing costs in November was the biggest monthly decline in more than four years, according to Dow Jones Market Data.
So, great for shareholders, but that does mean yield seekers are not getting anywhere near the bang for their buck enjoyed just several weeks ago?
Fear not, Bill Gross, the billionaire investor and Pimco co-founder, has the answer. He’s spied some opportunities lurking in a more esoteric corner of the market: mortgage REITS.
First, a quick explanation. Real estate investment trusts (REITS) are securities that own and often operate real estate or real-estate related assets. Buying REITS allows private…
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