Veteran Investment Guru Rida Morwa Reports: 'Why I'm buying as much as I can right now'

LONDON, Dec. 31, 2018 /PRNewswire-PRWeb/ -- The world's leading crowd-sourced investment teacher says today's ultra-cheap stocks have turned him and other smart investors into aggressive buyers, despite confusion created by the Federal Reserve, political bickering, and U.S.-China trade relations.

Rida Morwa has been advising both individuals and institutional clients on high-yield investment strategies since 1991. He manages one of the world's top high-dividend internet-based newsletters, High Dividend Opportunities, which provides a model portfolio, data and analysis to highlight profitable ideas for income investors and retirees

"The stock market is beginning to rebound because you just can't keep this good economy down," Morwa said. "I'm buying as much as I can right now because the fact is, the recent downturn was merely a temporary pullback based on fears, and not supported by macro-economic and market fundamentals, which remain very strong. This bull market will continue, and a lot of money will be made by smart investors who buy now, not later – especially high-dividend stocks and funds. Good stocks always bounce back."

On December 24, 2018, Morwa predicted, based on his technical analysis, that a big market rebound was imminent that same week. Following his prediction, the S&P 500 index soared close to 3% by the week's end.

Some of the biggest concerns cited by investors have been higher interest rates, a possible trade war with China, and political bickering in the United States. Morwa says it's time for investor paralysis to end. "It's understandable why many potential investors have succumbed to fear," Morwa said. "But history and the economy tell us a different story – that the market is chugging back because the revived and reinvigorated U.S. economy can't be easily extinguished."

Heading into 2019, there are two big factors that will drive demand for high-dividend stocks:

1. Inflation pressures will decrease in 2019. "This isn't too surprising, considering that the economic growth seen in 2018 was abnormally high due to the recent tax reforms," Morwa said. "GDP growth will be healthy, but slower than in 2018, which will create lower inflation pressures. This makes investing in high-yield stocks all the more appealing."

2. Interest rate hikes by the Federal Reserve will decelerate or stop altogether. "Look at how the 10-year Treasury yields went from 3.2% to 2.7% after the Fed's latest action," Morwa said. "This shows that investors are already factoring in lower inflation and lower rates. Stable or lower rates will drive demand for high-dividend stocks, leading to higher prices in 2019. Therefore, smart investors will buy these high-dividend value stocks now. Currently, many of my picks are paying double-digit yields – but these opportunities won't last long."

Morwa believes 2019 will be the last year that the Fed will raise interest rates, and that interest rates might very well start declining as soon as 2020.

"Income seekers must act now," Morwa said. "With an aging population, more and more people are reaching the retirement age, creating more demand for high dividend stocks. Soon, these great deals earning 8%, 9%, and 10% or more may just not be here. Today's market is an income seeker's dream. Instead of putting your money into low-return bank products, you can earn stable and high income despite any market volatility. Right now, the best high yields are found in preferred stocks, property REITs, midstream MLPs and BDCs. You can buy now at low prices to start generating reliable, regular income, or you can sit on your hands and regret it later."

Rida Morwa is CEO of Aiko Capital Ltd. His High Dividend Opportunities, with over 1,800 members, is one of the world's largest communities of income investors and retirees. Morwa is a former CPA, with 30 years' experience in investments and commercial banking. He has been advising both individuals and institutional clients on high-yield investment strategies since 1991. https://seekingalpha.com/author/rida-morwa/research?source=googlerm

SOURCE High Dividend Opportunities