Dividend Scalping - Beating The Yield Curve with Equities

Dividend Scalping - Beating The Yield Curve with Equities

I am surprised by how many of my friends have their savings in a "riskier" money market yielding a 1% return for a 1-year investment. To their defense, they are getting a much better deal than they would had they loaned to the US Treasury, which yields 0.25% for a 1-year investment. However, what most people do not realize is that the stock market (using the S&P 500 as the barometer) produces an annual  dividend yield of about 3% (See Futures Fair Value). That may not sound like striking gold, but it's 1200% better than lending money to the Federal Government via the US Treasury.

If the stock market is such a good deal, then why haven't investors returned to it?

T-Bond Futures have reached all-time highs and why we're still bullish on them

We are seeing Treasury Futures prices hitting historic highs. The knee-jerk reaction is to say that they are over-valued. Indeed, there has been talk of a bond bubble. While we agree that all bubbles must eventually come to an end, we have reason to suspect that there is still a good deal of potential upside to this market.

We had initially believed that t-bond futures prices could realistically only go so high, perhaps 136 seemed like a good ceiling. But one of our colleagues was the first to indicate that bond prices were likely to go up more, because for the last 18 of 19 years, bond futures prices had gone up between the months of August and February.

Welcome to MTL Futures!

This is my first ever blog, and first ever blog post. I've been a little late to the scene, but am ready to dive in head-first. Please continue to check in regularly as we continue to improve the site and provide leading-edge content.

From the team and I, we wish you a happy trading day!