Click on the blog title above to read about what www.theStreet.com has to say about two "Paid to Wait" stocks that WFG owns.
Investing Lesson
If you are going to invest in the stock market, why not get Paid to Wait for the future appreciation of the stock(s) that you own to unfold over time and ignore the day-to-day ups and downs!
If you are sitting on the sidelines, you are missing out, regardless of the future ups and downs of the markets.
Wednesday, October 13, 2010
Monday, October 11, 2010
What Does The Republican Momentum Mean For Taxes?
So much hinges on the outcome of the midterm elections: Will the balance of power in Washington change? Will Congress extend the Bush tax cuts? The most popular question we are getting from our clients is—what does all this mean for my portfolio?ANSWER
The stock market operates in a anticipatory fashion, meaning that the expected election results are already baked into prices of stocks already.
As a long-time, card-carrying Contrarian investor, I expect the following after the elections:
Do not be a bit surprised if the market sells off and ends 2010 in negative territory. I would place the odds of that outcome at at least 50/50.
Investing Lesson
If you are going to invest in the stock market, why not get Paid to Wait for the future appreciation of the stock(s) that you own to unfold over time and ignore the day-to-day ups and downs!
If you are sitting on the sidelines, you are missing out, regardless of the future ups and downs of the markets.
Monday, October 4, 2010
As Close To A Legal Ponzi Scheme As You Can Get: Wall Street Products Designed For The Greedy and Gullible
Charles Ponzi is long dead, but the scams live on
and play out each week.
and play out each week.
There is a corner of the stock market where products are designed to:1) Sell some "sizzle" in advance of an IPO.
2) Remove some money from the investor's wallet (5%) at time of sale.
3) Appeal to the "greed" section of the human brain.
4) Offer you an ongoing "yield" (watch this word closely) that knocks the socks off everything else.
5) Pretty much make sure that over time your investment continues to decline.
What lies in this murky corner?
Answer: Closed End Funds (CEFs). Specifically, "Managed Payout" CEFs. It gets worse. Even reputable mutual fund firms have rolled out such funds over the past several years, all in an effort to "three card monte" the shareholder.
Click on the blog title above to read an outstanding blog from
Dividends For Life.
Dividends For Life.
Note that WFG owns six of the stocks listed as superior alternatives to the scammy CEFs.
Investing Lesson
Greed and fear are the two greatest factors that typically separate investors from their hard earned capital.
Wednesday, September 29, 2010
WFG Contrarian Strategy Differs From Most, But is Working in 2010
One of the smartest investment guys on the planet is David Rosenberg. I read his report every day. Like myself, he is a contrarian and is in the minority of strategists who believe the economy is not going to get better any time soon and could go "double dipping" (double dates were more fun!) The table below is his advice for investors. I shifted WFG portfolios in this direction over one year ago.
WFG Scorecard On The Above1) Check
2) Check
3) Check
4) Check
5) Double Check!
6) Double Check!
7) Check and moving towards Double Check!
INVESTING LESSON:
Only by standing against the prevailing winds–selectively, but resolutely–can an investor prosper over time. Such a strategy may underperform during markets that are rising, based upon the momentum of the herd vs. fundamental valuations.
WFG Scorecard On The Above1) Check2) Check
3) Check
4) Check
5) Double Check!
6) Double Check!
7) Check and moving towards Double Check!
INVESTING LESSON:
Only by standing against the prevailing winds–selectively, but resolutely–can an investor prosper over time. Such a strategy may underperform during markets that are rising, based upon the momentum of the herd vs. fundamental valuations.
Tuesday, September 21, 2010
Dividends Matter
Here are some interesting return numbers when looking at where to put your money:
Year to Date, the S&P 500 is up 0.94% excluding dividends but is up 2.42% including dividends.
Over a one-year time period, market fluctuations account for 80% of returns but over a five-year time horizon, dividend yield and growth account for almost 80% of returns.
Ned Davis Research produced the following return figures: Since December 31, 1929, $100 invested in S&P 500 price only index grew to $4,989. That same $100 invested in the S&P 500 total return index grew to $177,774!
Since 12/31/1929, 95.8% of returns in the S&P 500 are accounted for by dividends and their reinvestment into the index.
Moral of the story, Paid To Wait stocks should be a part of every investor's portfolio.
Year to Date, the S&P 500 is up 0.94% excluding dividends but is up 2.42% including dividends.
Over a one-year time period, market fluctuations account for 80% of returns but over a five-year time horizon, dividend yield and growth account for almost 80% of returns.
Ned Davis Research produced the following return figures: Since December 31, 1929, $100 invested in S&P 500 price only index grew to $4,989. That same $100 invested in the S&P 500 total return index grew to $177,774!
Since 12/31/1929, 95.8% of returns in the S&P 500 are accounted for by dividends and their reinvestment into the index.
Moral of the story, Paid To Wait stocks should be a part of every investor's portfolio.
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