How to Invest for Income in 2024

2024 is upon us…

By the time this hits your inbox, the ball will have fallen, “Auld Lang Syne” will have been packed away for another 364 days, and my dogs will almost have recovered from the sedative we have to give them because of the massive fireworks display our neighbors put on every year.

If the ball bounces right, Texas will have beaten Washington State, Michigan will have fallen to Alabama, and we will be looking at a barnburner of a national title game that hopefully culminates in a chorus of “The Eyes of Texas Are Upon You.”

Those of us with interest in the markets know that the final round of the production game is also looming in the form of the Barron’s Roundtable that will be published over the next several weeks.

But for investments that will actually make you money, you’ll have to look elsewhere. Let me explain…

We have already seen dozens of forecasts, including an article suggesting various income strategies investors should embrace for the New Year, published in Barron’s this past week. I have been a Barron’s subscriber for a very long time, but to call this article awful is a kindness. I hope ChatGPT wrote the piece because there appeared to be little thought used to select the suggested investments.

Income-seeking investors would be much better off using strategies like the ones fellow Investors Alley editor Tim Plaehn and I have developed. At least we did some actual research into our ideas and understand how to properly use income-producing investments in the real world.

I do not make predictions about what the markets may or may not do. If stocks are cheap and have a margin of safety, I believe it is time to be a buyer. If the stocks are overpriced and everyone loves them, it is a good idea to be a seller.

The cheapest stocks with a considerable margin of safety right now are small community banks.

In 2024, I expect to see two things that will lead to a…

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