Vector flag of United States of America. Waving flag of USA, vector illustration. Bright colors
You may have noticed that lately, the media is pumping out more stories on how the US economy and stock markets are leading the world.
Well, it’s true. Today we’re going to get into a few reasons why that is. We’re also going to look at how us income investors can use a special kind of income play, closed-end funds (CEFs)—many of which yield north of 9%—to cash in on America’s runaway lead, boosting our dividends and setting ourselves up for 10% annualized returns, basically forever.
We’ll wrap with a real “nuts-and-bolts” view of the factors that go into the ongoing rise in US stocks—uncovering fundamentals that few investors stop to learn (but can help us immensely, especially when a 2022-style pullback tests our nerve).
Innovation, Efficiency, Capital Moves Power US Stocks Ahead
Just the latest stories on American financial exceptionalism to come across my desk lately include this one from Fortune magazine.
And another one from multibillionaire hedge fund mogul Ray Dalio’s firm, Bridgewater Associates, which says that America’s lead is likely to continue because “US companies are more innovative, more efficiently run, better at deploying capital and have a more shareholder-friendly orientation than their developed-world peers.”
That’s all true, and its why the S&P 500 (the go-to index fund for which is shown in orange below) has…
