Simple Pleasures. Every once in awhile, life gives you a little bonus. I’m not talking about winning the lottery. I am talking about the simple things that you might even miss if you aren’t paying attention. The picture is of a flower I observed in the woods where I live. I have no idea how it got there. Perhaps it was planted a long time ago by someone or perhaps it has always been there obscured by other plants and I didn’t notice it. Anyway, I discovered three more after that one. I hope they come back next fall and I am here to see them.
The Market Is Up Again Today. It really seems overvalued; however, one explanation I read is that there are large amounts of cash on the sidelines held by investors who are disappointed that they missed the recent rally and have grown tired of getting virtually zero returns on their “safe” bank deposits and money market funds. Another explanation is that when a large majority thinks the direction of the market has to change direction, they are usually wrong. Your guess is as good as mine but I continue to look for new strategies that will do well in a market that is flat or declining.
There Are Reasons To Be Cautious. Perhaps the main reason for caution is consumer behavior. The consumer accounts for 70% of our economic growth they are scared and finally beginning to realize that borrowing to fund a lifestyle they really can’t afford can’t go on forever. Of course, they are also worried about potential job loss, decline home values, and declining investment values.
If You Got Out Of The Market, It May Be Too Late To Get Back In. You might re-enter the market with some of your cash but it certainly isn’t time to jump in with both feet. I may sound like a broken record but I still believe in investing for income. The following is an example of an income portfolio. These stocks survived the debacle and the odds of dividend cuts or devastating price decline are not large.
American Electric Power Price 31.9 Yield 5.21 Utility Company
AT&T Price 26.5 Yield 6.19 Telecom
Bristol Meyers Price 22.2 Yield 5.57 Drug
Kinder Morgan Price 54.42 Yield 7.72 Energy pipeline
Prologis Preferred Price 19.73 Yield 8.74 Real Estate
Apollo Investment Price10.2 Yield 11 Business Development
Prospect Capital Price10.6 Yield 15 Business Development.
By way of disclosure, I own all these companies in my own portfolio except Kinder Morgan and American Electric. Those I don’t own are companies I may buy in the future. I might also add that I bought some of these at a considerably higher price than those listed here. As long as I get the dividend, I am not overly concerned about the current price.
Don’t Bet The Farm. Any or all of these stocks could go in the tank next week. I am not recommending that anyone embark on a venture to purchase this portfolio, just giving you some ideas as to ways to get a bit higher return than on guaranteed investments. If I thought this portfolio would go to zero, I would take my money out. If I thought the value would skyrocket, I would put all my money in. Undoubtedly, this is more risky than insured deposits but some risk is necessary in order to generate sufficient cash flow to fund my living expenses.
The Market Is Up Again Today. It really seems overvalued; however, one explanation I read is that there are large amounts of cash on the sidelines held by investors who are disappointed that they missed the recent rally and have grown tired of getting virtually zero returns on their “safe” bank deposits and money market funds. Another explanation is that when a large majority thinks the direction of the market has to change direction, they are usually wrong. Your guess is as good as mine but I continue to look for new strategies that will do well in a market that is flat or declining.
There Are Reasons To Be Cautious. Perhaps the main reason for caution is consumer behavior. The consumer accounts for 70% of our economic growth they are scared and finally beginning to realize that borrowing to fund a lifestyle they really can’t afford can’t go on forever. Of course, they are also worried about potential job loss, decline home values, and declining investment values.
If You Got Out Of The Market, It May Be Too Late To Get Back In. You might re-enter the market with some of your cash but it certainly isn’t time to jump in with both feet. I may sound like a broken record but I still believe in investing for income. The following is an example of an income portfolio. These stocks survived the debacle and the odds of dividend cuts or devastating price decline are not large.
American Electric Power Price 31.9 Yield 5.21 Utility Company
AT&T Price 26.5 Yield 6.19 Telecom
Bristol Meyers Price 22.2 Yield 5.57 Drug
Kinder Morgan Price 54.42 Yield 7.72 Energy pipeline
Prologis Preferred Price 19.73 Yield 8.74 Real Estate
Apollo Investment Price10.2 Yield 11 Business Development
Prospect Capital Price10.6 Yield 15 Business Development.
By way of disclosure, I own all these companies in my own portfolio except Kinder Morgan and American Electric. Those I don’t own are companies I may buy in the future. I might also add that I bought some of these at a considerably higher price than those listed here. As long as I get the dividend, I am not overly concerned about the current price.
Don’t Bet The Farm. Any or all of these stocks could go in the tank next week. I am not recommending that anyone embark on a venture to purchase this portfolio, just giving you some ideas as to ways to get a bit higher return than on guaranteed investments. If I thought this portfolio would go to zero, I would take my money out. If I thought the value would skyrocket, I would put all my money in. Undoubtedly, this is more risky than insured deposits but some risk is necessary in order to generate sufficient cash flow to fund my living expenses.
No comments:
Post a Comment