The recent losing streak continues for the market. This is the
first one we have seen in 2012 and we are carefully looking at the
names we currently like to see if any recommendation changes are
warranted. We will keep subscribers updated to any possible
Making headlines today were shares of Best Buy (
), which did end the day more than 5% lower on
news the company's CEO has resigned.
Best Buy has been hurt badly by the rise in online electronics
sales by competitors such as Amazon.com. As we've maintained for a
while now, investors are much better off avoiding this so-called
Commodity-related stocks continue to act heavily, with investors
moving away from names like Caterpillar (
) and Freeport McMoran (
). Meanwhile, Wall Street analyst downgrades pushed down shares of
Abercrombie & Fitch (
), ConocoPhillips (
), and Entergy (
). A couple of names that avoided much of selling were
) and Pfizer (
), with both companies getting an early boost from positive analyst
commentary, but ending the day essentially flat.
Words Can Break You
Baseball fans are used to hearing crazy comments from former
major league player and current Miami Marlins manager Ozzie
Guillen, but his latest rants about loving Fidel Castro and
respecting his ability to hold his position of power for decades
may punch his ticket right out of Miami. Athletes and celebrities
tend to gravitate toward a microphone and just let words fly, many
times without much through behind their words. When sensitive
topics like Fidel Castro's reign of terror in Cuba come up, it's
all too easy for Mr. Guillen to put his foot in his mouth.
In your own career, you may find yourself in a predicament where
you're asked to make your thoughts known, but sometimes you need to
really step back and decide if the consequences of offering your
opinion have any upside at all. In a recent "Celebrity Apprentice"
episode, actor Lou Ferrigno was asked if his team had the better
video production than his opponent, and he said he liked the other
team's better. Donald Trump used this "disloyalty" as the main
reason he "fired" Lou Ferrigno from the team. Clearly, there will
be times in life where speaking your mind can only do damage.
I recently watched a movie called "Doubt" in which a priest
(played by Phillip Seymour Hoffman) was accused by the school's
principal (played by Meryl Streep) of having an inappropriate
relationship with one of the students. In one of the more stirring
scenes, Mr. Hoffman gave a sermon during mass with gossip being the
subject. He told of a situation in which a woman asked if gossiping
was a sin. The priest in Mr. Hoffman's example said it was a sin
and hurt the reputation of her fellow man. The priest told the
woman to go up to the roof with a pillow and gut it with a knife.
She later went back to confession and when he asked her what
happened when she gutted the pillow. The woman replied that
feathers came out and flew everywhere. He told her to go back and
retrieve all the feathers, but the woman said that would be
impossible, because the wind has taken them all over. Then priest
replied, this is what happens with gossip. Once word gets out, it's
impossible to retrieve.
I always try and think before I speak, and I teach my own kids
to do the same. Whether it is in an e-mail, in person, or on the
phone, your words carry a lot of weight. We all learn as we get
older that speaking without thinking first can be disastrous.
In investing, reacting too quickly can also be a costly error.
How we react to various levels of turmoil can sometimes be the
difference sometimes in how successful we eventually become.
Surround Yourself with the Best Company Possible
We've all heard some great one-liners about how you're only as
good as the group you hang with. As kids, it was easy to make new
friends. I remember that in the schoolyard, my friends consisted of
whoever had a ball and was willing to play. As adults, however, we
tend to slow down the process of getting to meet and freely reach
out to new people. If anything, adulthood is the time where we have
the most to gain from forging new relationships - particularly in
our career or financial livelihood.
Some people may feel uncomfortable being around experts in a
particular area. I urge you to forget those initial feelings of
inferiority and instead learn to ask better and better questions.
Most successful people do not mind talking about their road to
success, especially if someone crafts questions that are deeper
than those they normally hear. Ask someone who is successful how
much money they make, and they will probably look to dismiss of the
conversation quickly. Instead, ask about the timeline of their
success. How long did it take for the seeds they planted to bloom?
These kind of questions will make folks think of the struggles they
went through and how they persevered. They'll gladly bring you into
their world because they know you understand the time and
sacrifices needed to achieve success.
Being around talented and successful people should only inspire
and motivate you. Envy should never be part of the equation, since
it'll only delay your development. Think back to the days when you
were young and fearless, and you will soon find yourself seeing the
world in a better way as you get older.
17 Money Excuses People Make (Part 1)
Excuse #1 - "If I earn interest, I have to pay more taxes."
My Response: Don't get preoccupied with taxes when it comes to
investment returns. For many of us, making more money with our
investments should be the goal, not avoiding paying more in taxes
by possibly foregoing better investment opportunities.
Excuse #2 - "At my age, it's too late anyway."
My Response: Don't ever start thinking in this negative way.
Remember my dad's barber friend who bought his first house at age
77. That's the right mentality! Compound interest from dividend
stocks kicks in sooner than you think, so don't ever tap out.
Excuse #3 - "Why save money? You can't take it with you when you
My Response: This is normally the rationale for those around us
that have racked up the most debt. I personally would rather create
a positive legacy rather than one where you burden your loved ones
with all your poor financial habits.
Excuse #4 - "We're only young once!"
My Response: I never stop believing I'm young, and there's no
reason to waste money just because you want to stand by an "only
young once" mantra. Ask anyone that is in their 30′s and 40′s and
they will tell you about being a bit too foolish with money in
their early earning days.
Excuse #5 - "But it's only zero percent interest!"
My Response: Yes, the "free money" myth is super popular when it
comes to borrowing these days. But what about the obligation of
making monthly payments once you make a big purchase you likely
don't need? There's no such thing as free money, regardless of
Excuse #6 - "I'll pay it off next month!"
My Response: This is where the credit card companies really get
you. The minute you start falling behind is when the fees start to
pile on. Pay it off on time and learn to be consistently
Income, Income, Income
At Dividend.com, we maintain our focus on the best
income-producing investments the markets have to offer during time
of heightened volatility. We want to make sure we have only the
most pullback-resistant names on our
Best Dividend Stocks List
. Also, if we see the market putting in what looks like a decent
bottom, we will be prepared to scale up the list of stocks we like.
Stay tuned and be sure to look for
member alerts along the way. Don't count on the government or your
employer to set you up for a remarkable retirement. Take control,
do your own research, and achieve your goals yourself!
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