Market Wrap-Up for Dec.21 (TD, CCL, DRI, DE, CAT, more)

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Gloomy economic headlines continue to come at us every day, and they will likely not stop. At the same time,the market continues to climb higher, leaving many investors to watch on the sidelines.

You should check out the video Tom and I put up today about focusing your worries elsewhere, preferably on what you are doing with your investment portfolio, including maximizing retirement accounts among other tax-advantaged accounts. Of course, it does make sense to watch the economy, but so many investors have been paralyzed with fear that the 80% plus rally off the March 2009 lows continues to be among the most hated rallies from a retail investor standpoint.

Huge cash piles for corporations will only lead to further M&A, increased dividend payouts, and stock buybacks in 2011. Are you ready to put money to work when the eventual pullbacks happen? Good markets will always have pullbacks, I just wish we can get even more now, so that the entry levels can improve for investors. We'll continue to absorb the data that comes at us, and will be sure to pass on the anecdotes that could matter when corrections come.

The one area that worries me a lot continues to be gold, despite the big run it has had. I worry about it mostly from a crowded trade standpoint. This is not a new worry, but is one that I have had the last couple of months. During that time, gold prices have remained stuck in a tight range, with the inability to hit new highs. Take notice and be ready to act if you have been adding to exposure to the yellow metal (through miners, gold etfs, etc.)

Looking at today's action, TD Bank ( TD ) saw a nice bump higher on news it is acquiring Chrysler Financial, the former financing arm of Chrysler Group, which is now being sold by Cerberus Capital Management. This is another example of deals where a corporation is betting big on economic stability and eventual growth. The agricultural equipment space continues to do well with Deere ( DE ) and Caterpillar ( CAT ) once again finishing higher. On the earnings side, investors were cheering Carnival Corp ( CCL ), but did not take too well with results from Darden Restaurants ( DRI ).

We added three new dividend names to our recommended list today. Be sure to check out the post if you did not read the e-mail alert that was sent out. One last note I wanted to share is the data from the Center for Retirement Research at Boston College, reporting baby boomers have received $2.4 trillion in inheritances, and they stand to get another $6 trillion. Baby boomers will likely be putting that money to work at some point, and with interest rates in the dumps, the lure of building income through high quality dividend-paying stocks should be quite enticing.

The website for my new book "Be a Dividend Millionaire" due out in 2011 is up. Please check it out at DividendMillionaire.com for more info. And as always, check out our industry-leading Best Dividend Stocks List for the top dividend names to put money into right now.

Thanks for reading, and I'll see you tomorrow!

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CAT , CCL , DE , DRI , TD

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