A year ago, income investing was all the rage.
With the Fed’s zero interest rate policy (“ZIRP”) punishing savers with its low interest rates, retirees depending on their accumulated savings had grown increasingly frustrated trying to eke out income from their investments.
So, it’s no surprise that many piled into a bevy of investments that promised high single-digit, or even double-digit, percentage income.
And for a while, high-income investing seemed like manna from heaven.
Investors were collecting high income on investments in sectors that had perfected the art of minting money, month after month, quarter after quarter.
Income Investing: The Bottom Drops Out
That all changed on May 22 of this year, when Fed Chairman Ben Bernanke introduced the word “tapering” into the global financial lexicon.
Read the rest of this article about tapering and interest rates on Eagle Daily Investor.