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Rising interest rates could create serious pressure for consumers, corporations, housing, equity valuations, and the federal government's debt-servicing burden. However, there are some investments that are well-positioned for Fed rate hikes. I detail my two favorite places to invest that should be highly resilient in the current environment.
Building a $100,000 dividend snowball is foundational for financial security and passive income. I detail how I would go about doing so in today's rising rate environment. I also share some specific picks and how to allocate capital on a percentage basis to build the snowball.
NewEdge Advisors LLC lifted its stake in shares of VanEck BDC Income ETF (NYSEARCA:BIZD) by 35.5% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 319,095 shares of the company's stock after purchasing an additional 83,527 shares during the period. NewEdge
Most equity REITs are uninvestable for high dividend-seeking investors. However, there are some gems to be found. Bargain-hunting high-quality names could be a reasonable approach.
Top companies in the private credit industry have pulled back over the past few days as investors reassessed their outlook on the Federal Reserve. Most have fallen into correction territory, dropping more than 10% from their recent highs.
Covered call ETFs dominate income investing conversations, but leaning entirely on one options strategy carries a hidden long-term cost most investors overlook.
The BDC sector thrived post-COVID as low rates and strong underwriting supported robust dividends and performance. Rising rates initially sparked default fears, but BDCs benefited from higher coupons and stable funding costs, with limited non-accrual uptick. Since early 2025, most BDCs have cut dividends, and total returns now barely match inflation or T-bill rates.
Equity markets remain in a prolonged, robust bull run, demanding high selectivity for new opportunities. Infra and utility sectors are heavily dependent on AI, while energy and midstream appear overinflated due to war-related factors. High-duration assets are considered excessively risky in the current environment, favoring cash preservation instruments like high-quality CLOs and T-bills.