Mar 20 2025 52 mins 19
Amid rising market turbulence, finding stable income sources has become increasingly crucial for investors seeking portfolio resilience. In this compelling discussion, Jay Hatfield draws on his 35 years of Wall Street experience to illuminate the path forward for income-focused investing strategies that can weather economic uncertainty.
Hatfield challenges conventional wisdom with his razor-sharp macroeconomic analysis, demonstrating why tariffs are actually deflationary rather than inflationary and how this misunderstanding creates opportunities for well-positioned investors. His forecast that the 10-year Treasury will drop to 3.75% as the Federal Reserve finally acknowledges economic slowdown provides a framework for strategic positioning across asset classes.
The discussion reveals why traditional S&P 500 portfolios yielding just 1.3% simply can't generate meaningful income in today's environment. Instead, Hatfield outlines a comprehensive approach using preferred stocks (PFFA yielding ~9%), high-yield bonds (BNDS yielding ~8%), dividend-paying stocks, and reformed MLPs to create substantial income streams while managing risk. His insights on small caps are particularly compelling – currently trading at significant discounts to large caps, they offer both attractive income and growth potential as rates decline and M&A activity accelerates.
What sets this conversation apart is Hatfield's practical approach to portfolio construction. Most investors unknowingly carry excessive technology exposure through their index funds and individual holdings, leaving them vulnerable to tech sector volatility. By strategically incorporating income-producing assets, investors can create more balanced portfolios that generate consistent returns regardless of market conditions. As Hatfield notes, "staying out of trouble is about 90% of the battle" when it comes to long-term investment success.
DISCLAIMER – PLEASE READ: This is a sponsored episode for which Lead-Lag Publishing, LLC has been paid a fee. Lead-Lag Publishing, LLC does not guarantee the accuracy or completeness of the information provided in the episode or make any representation as to its quality. All statements and expressions provided in this episode are the sole opinion of Infrastructure Capital and Lead-Lag Publishing, LLC expressly disclaims any responsibility for action taken in connection with the information provided in the discussion. The content in this program is for informational purposes only. You should not construe any information or other material as investment, financial, tax, or other advice. The views expressed by the participants are solely their own. A participant may have taken or recommended any investment position discussed, but may close such position or alter its recommendation at any time without notice. Nothing contained in this program constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments in any jurisdiction. Please consult your own investment or financial advisor for advice related to all investment decisions.
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