During the depths of the financial crisis in 2008, the Federal Reserve began using a program known as quantitative easing (QE).
This entailed creating money in order to purchase government debt securities.
Through multiple rounds of QE over the past decade, the Fed’s balance sheet has ballooned to over $4 trillion.
The Fed’s assets are growing once again, as shown in the chart below:
This time it’s due to the central bank’s intervention in short-term money markets, which you can read about here.
This buying pressure has kept a lid on interest rates. Since the financial crisis, the yield on the 10-year Treasury has fallen from around 4% to 1.74% today.
But there are other alternatives to help produce yield.
Consider adding the Global X Nasdaq 100 Covered Call ETF (NYSE: QYLD) to your portfolio.
This exchange-traded fund (ETF) writes call options on a basket of common stocks to generate income. It has yielded over 10% in the last 12 months.
Research Analyst, Alpha Stock Alert
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