Here’s an interesting Money magazine article about finding value in today’s market …
You’ll notice that it reinforces much of what we’ve ALREADY been doing in Dividend Superstars, including focusing on market lagards (something that I’ve been writing about extensively) as well as focusing on dividends.
Related posts:
- Berkshire Hathaway Is Now “Optionable” I have written a lot about Warren Buffett’s Berkshire Hathaway, including details on the company’s own options positions. And in...
- Interesting Article on Investor Expectations Are investors setting themselves up for disappointment? Sure seems that way … http://finance.yahoo.com/retirement/article/108608/why-many-investors-keep-fooling-themselves?mod=retire-planning Something I continually stress in Dividend Superstars...
- Macs vs. Windows 7 In the latest issue of Dividend Superstars, I said I had some concerns about MSFT’s stock in the short run...
{ 2 comments… read them below or add one }
Hi Nilus:
I just read your recent recommendations in the March Dividend Superstars report. I am wondering if we should be buying stocks right now, even the stocks that are supposed to be bargains:
Saturday, March 27, 2010
Three Defensive Plays for the Next Market Sell-off
by Mike Burnick
“A sudden market plunge of 20 percent or more this summer or sometime this fall would not surprise us at all…”
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Here is why some companies look good on paper, they are sucking up tax payer money, interesting how Capitalist companies are willing to become Socialist Companies when it benefits THEM. People are throwing bricks through the wrong windows.
http://online.wsj.com/article/SB10001424052748704896104575139830746680218.html
Nilus Mattive Reply:
April 27th, 2010 at 10:35 AM
Sharleen,
I apologize for not answering this earlier. For some reason, I was not receving comments posted to my blog via e-mail.
There is certainly the possibility of a market drop, even a sharp one, especially after the runup off the bottom. But I am of the mind that we can never anticipate such events perfectly, so our best approach is buying undervalued stocks when they present themselves and by continually, slowly, putting new money to work — similar to a generic dollar-cost-averaging strategy.
The Dividend Superstars portfolio still has about 40%+ in cash, which is ready for deployment in the event of a severe decline. So in reality, we are being extremely conservative at this point, even if we are nibbling on some stocks here and there.
Hope that helps answer your question!
The above reference to the Money magazine article. That article ends in a citing of the telecom ETF as a possible asset class to grow stronger in a slower recovering economy? Well that may be a great idea but why would you buy that ETF when the corresponding CEF is selling at a 12% discount to NAV. You get most of these same strong and merger activity companies at a steep discount with GGT? C’est Pas ?