I would lean towards Reits in the US, Japan, Singapore ect. There are reits like BLDG, which holds reits from Japan, China, Hong Kong, Singapore, Australia and Europe to Canada.
It yields 5% to 6% has pretty good diversification and has an management team that leans toward trend following and rules based decision making, which I like.
There are other reits that use leverage and that invest all over the world and I like them too.
I like reits because of there debts, leverage and rising earnings in an inflationary environment. I like them because if we continue to get inflation which may happen, they have inflation escalation clauses in there contracts where they can continue raising rents and paying down leverage and increase there dividends.
Some have pretty undervalued assets in Asia where the economies continue to grow and give you diversification from North America.
Infrastructure projects
I like Infrastructure projects inside North America because of the demand for energy from AI projects and other countries as we the US continue our wars for energy dominance and the same for commodities and other minerals.
I like AMLP, and other ETFs that are similar. They have 7% yields and are correcting right now so you may be able to pick up shares cheaper and for yields closer to 9%. There are Closed End Funds that are in the space to. I prefer ETFs and CEF than the specific companies because of K1 requirements or fees to get the tax benefits. K1 fees arent that bad if you use tax software like TurboTax.
I basically believe Infrastructure projects will be built out and given favorable tax treatment to investors and they will have built in inflation escalators so every year they will raise dividends and pay down debt and will protect you against inflation better than bonds.
If these projects are in Canada and US and Mexico, I believe they will be valued higher than projects in other places.
I want a rising dividend income and be protected from inflation.
BDC
Business development companies have been hit hard.
I mean the publically traded ones, like ARCC, ot TSLX or many of the others like OBDC, ect.
There are ETFs that buy a basket of those assets but I prefer to buy specific ones lime MAIN or ARCC ect.
They have nice yields now over 10% now.
I like them because of there business model to lend to smaller companies and get good terms.
I prefer them to bonds, there management teams have been around for decades and have built experienced teams that are very valuable and knowledgeable about there space and taking that experience to Europe and other places.
I believe the recent sell off is a bit to much and dont believe AI Technology will make there business model worthless.
If anything AI will make real estate thats unique more valuable, which is why wealthy people are buying the most soht after real estate keep going up in value, look at St. Barts in the Caribbean. We may see islands in the South Pacific do similar because of these trends, which is why I prefer Reits is Asia.
One more thing should be said in this article.
I still like trend following and growth shares or small cap in North America and Asia.
But because of my age I need more dependable income streams which is why I prefer the above ideas.
I now understand why my Grandfather owned reits and utes. I will but utilities again soon if theres a selloff in UTG or some of the covered call funds.
Anyhow thats it for now. Thanks for reading.
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