In the wake of S&P’s downgrade, it’s interesting to note how brutally the stock market is getting slammed while Treasuries are actually doing just fine.
Imagine Treasuries getting slammed on a bunch of stock rating downgrades and you’ll see the strangeness a bit more clearly.
Most importantly, yields on the S&P 500 and 10-year Treasuries are just about in line now. So if you’re an income investor, and even ignoring all my past arguments about rising dividends boosting effective yields, which is the better bet — the investments that ACTUALLY got downgraded or the ones that are being sold off even though they were issued by institutions with much stronger financials?
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{ 2 comments… read them below or add one }
Hello,
I’m a longtime subscriber to Income Superstars (or Dividend Superstars as it still exists in my head). This year you put out a special report on your favorite dividend paying stocks, but now I can’t find it either under back issues or special reports. I did see your new one: “The 5 Best Global Dividend-Paying Stocks” which I saved on to my computer, but I’d like to read the earlier one(s) that came out in the past couple of months. Can you make those available in the back issues of Income Superstars?
I’d like to use this dip and further declines to pick up some good dividend paying stocks we don’t have for myself and my clients so it would be great if I could access that earlier special report soon (I believe it had your 7 favorite picks).
Thanks for your newsletter. I find it very helpful.
-Brandon
Nilus Mattive Reply:
August 12th, 2011 at 8:40 AM
Hi, Brandon. I still call it Dividend Superstars most of the time, too. =^) Periodically, I review my old special reports and tell the staff to pull them if they’re outdated. Offhand, I don’t remember if that’s the case with the one you’re talking about … but if it isn’t on the site, that’s probably what happened. Customer service can probably give you the final answer. I also recently got done doing some new reports for a new promotion, and they may be able to point you to those if they’re not yet posted to the site.
Rick Santelli had an interesting observation. He said either the equities market or the credit market had it wrong. He compared the 10 year Treasury Note with the S&P 500.
Which do you think has it wrong?
http://video.cnbc.com/gallery/?video=3000039111
Nilus Mattive Reply:
August 16th, 2011 at 8:33 AM
Hey, Rich … I would say they both have it wrong to some degree!