The More The Fed Hikes, The More Income I Earn

Summary While headline CPI sits at 3.4% driven by a +16% spike in energy, "supercore" CPI (excluding food, shelter, and energy) remains anchored near 2.0%. Despite Core CPI falling from a 6.6% peak down to 2.4% faster than during the 1990s disinflation cycle, hawkish policy rhetoric continues to raise the specter of additional rate hikes. With the 30-year Treasury yield elevated above 5%, corporate bonds and preferreds trade at deep dollar discounts driven purely by interest rate adjustments. Don't fear the short-term mark-to-market turbulence caused by rate shifts; use higher-for-longer yields to lock in elevated recurring cash flow for the next 5 to 10 years. Looking for a helping hand in the market? Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. Learn More » cosmin4000/iStock via Getty Images Co-authored with Beyond Saving. If you are an income investor, changing interest rates are as important to you as the weather is to a farmer. When interest rates change, it can impact numerous income investments both in terms This article was written by Rida Morwa 127.15K Followers Follow Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991. Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone. Learn More. Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGNC, PTY, BRSP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.