The new dovish Fed posture requires some adjustment among income funds in my suggested portfolio of monthly paying stocks and funds (the last one is from the August post). REITS and bond funs with longer duration tend to outperform when short rates are lowered. Floating rate funds, on the other hand, have performed worse. Also, MLPs have continued to flounder. Adjust your weighting accordingly.

New income funds added to the portfolio are: GBAB (in the build America bonds category), FT (tactical allocation), FRA (bank loan), JLS (multi-sector bond) and BGT (bank loan). All are low risk and at least average return funds. I’ve also added RNP in the DRIP portfolio due to its strong long-run performance.

As risk-on investing appears to be on the upswing, some highly ranked (Zack’s) stocks are: DVA, MTZ, HIBB, AXE, WNC, SKK, NOA, and SEAS. Dividend growth stocks to look at include: ARCC, FUN, CNXM, FTAI, BKE, CMRE, and SID. Currently, the top ETFs are EWT, IYW, XLK, MGK, and FTEC.

Although the economy is slowing, particularly due to the fall off in private investment due to tariff uncertainty, the Fed sees no impending recession. I also do not foresee any deal with China and therefore expect the Trump administration to soon be a thing of the past. That increases the concern over healthcare socialization which will make investing in TNQ and BME more risky. Please keep that in mind. In the meantime, good investing!