It was quite a wild day for the markets following the 10:00am
EST speech from Federal Reserve Chairman Ben Bernanke in which the
chairman did say they have available tools they can use when
necessary to help stabilize the economy. This gave investors a bit
of comfort and led us to a good-sized rally. In fact, this was the
first up week for the averages out of the last five. I'm not quite
sure there was much I personally took out of the speech, but we'll
take it and that's what I have been saying when we see quirky
market action to the upside lately. Any rally can certainly can
help investors get out of any poorly-performing investments.
We sa shares of Tiffany & Co. (
) gain on the company's earnings results and raised guidance.
Positive Wall Street commentary on shares of Qualcomm (
) and Broadcom (
) helped push those tech names higher. We are saw green on the
screen for commodity plays Cliffs Natural Resources (
) and Potash Corp (
). The companies could be seeing a lift from traders looking at
rising commodity prices in the near-term from any sustained
Hurricane Irene storm damage. Other winners in today's action
included Coach (
), Boeing (
) and Deere & Co. (
We keep hearing stories about the government initiating a new
program to adjust mortgage rates for borrowers who have been unable
to reduce their rates previously. Earlier this week, it was
reported that home prices in the U.S. fell 5.9 percent in the
second quarter from a year earlier, the biggest decline since 2009.
The continued rise of foreclosures added to the inventory of
properties for sale.
The pipeline of foreclosures could take years to get through,
and the government knows this. They also know that banks are not
dealing in good faith when it comes to helping borrowers (even
those with great credit) to work out better terms for their
existing loans. Of course, lenders can simply point to the trend of
decreasing home values in making their path difficult. Washington
believes that it we can reduce people's rates, the extra money
saved will be put back to work in the economy. I would prefer a
different initiative to encourage people to save some of those
funds instead. Fixing one wound (interest rates) will not help the
major wound for many, which is a lack of savings and preparedness
You see, it doesn't take much to convince anyone to go out and
spend. That's a simple task. We don't even have to leave the house
to spend money. Turn on your computer and you can turn in a million
different directions to spend your hard-earned dollars. I'm more
concerned about what people will need for their later years!
As the government ponders various mortgage programs, I'd like
everyone to just stay focused on the here and now. Think about what
you can do to build up wealth for those later years. Many of us
still have major expenses we'll need to face in the future, like
buying a home or paying for college.
If you need encouragement from a third party, you may want to
set up an appointment with a certified financial planner who can
take the temperature of your current financial situation. If you do
set up a meeting, be sure to come clean with exactly what is
happening money-wise. You should look for someone that has
experience in areas such as tax planning, investments, insurance,
retirement planning, and estate planning. You may need help looking
through your current 401K, as many people don't know exactly what
they're investing in. Trust me, 401K plans tend to be ignored -
even more so if they are dropping in value. You'll need to find out
how your planner is compensated as well. Is it through commission,
fee only, or fee-based (a combination of commission and fees)? If
they are not strong in an area you need the most help in, then they
aren't the right fit. Don't settle! Everyone's situation is
different. Someone could be coming into a large amount of money in
the next few years and need to set up an estate plan, for example.
And there are numerous other factors that can get pretty
complicated. Do your homework first before deciding.
At Dividend.com, we are maintaining 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.
Looking ahead to next week, quarterly earnings will continue to
trickle in as continue to see how well corporate America did in the
second calendar quarter. Watch for earnings results from the likes
of Campbell Soup (
), Joy Global (
), and H&R Block (
), just to name a few.
Be sure to catch up with our latest watchlist updates this
, including reports on earnings/story stocks, analyst
upgrades/downgrades, dividend ETFs, and much more. And as always,
you can view our current recommendations on our industry-leading
"Best Dividend Stocks" list
Thanks for reading my newsletter, everybody! Please pass this on
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wealth and using common sense to do so.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here