The Quest for Yield
July 2010 – The stock market’s abrupt decline in May and June was a rude awakening for investors who had started moving cash back into stocks. Unfortunately, the S&P 500 Index was down more than 11 percent in the second quarter. While the market has clawed back some of that loss in July, economic uncertainty and stock market volatility have reinforced our view that stocks are unreliable in the short run. Therefore, we have turned to a strategy of trust preferred securities combined with select high dividend stocks to provide the highest probability for a respectable total return.