It was a subdued start for the market as we began this
holiday-shortened week. Once again, we hope everyone enjoyed the
break in the action and got to spend some quality time with family
and friends. Volume during today's session actually finished a bit
below Friday's totals, just to paint a picture of how light the
The Christmas shopping season is barely over, and news broke
this morning that Sears (
) will be shuttering over 100 Sears and Kmart stores due to poor
holiday sales. That story is dominating the headlines early today,
as investors try and figure out what the future holds for other
Over the holiday, I chatted with one of my relatives who works
in the retail clothing sector. He said that sales were strong in
his stores, but that the company was basically giving their
merchandise away, barely turning a profit on many regional brands.
Margins, he said, would take a tremendous beating. We'll see how
the publicly-traded retailers hold up in the coming weeks, but some
could could be in for a bumpy ride if we see similar news like
Sears released today.
Elsewhere, shares of Mead Johnson Nutrition (
) attempted to re-gain some of the losses from last week, as
the company reports no bacteria was found in its popular
. Several large retail chains had pulled MJN's products from their
shelves following last week's scare. Yield-centric stocks like
Southern Co. (
), Dominion Resources (
), and tobacco play Lorillard (
) were up once again as last week's hyper-drive to buy yield
continues into the new week.
Don't Get Sloppy in an Up Market
As the market has been on a good tear to the upside, we've
increasingly heard from investors looking to get back into the
markets in one big swoop. This trend tends to take hold when
investors think the train is about to leave the proverbial station
(i.e. they're missing out on potential gains by sitting on the
As dividend investors, we should never panic and feel compelled
to throw a huge sum of money into the markets all at once. The best
approach (in our opinion) is to make regular monthly stock
purchases so you don't have to agonize on whether you have picked
the right day to go "all-in."
I understand the anxiety some investors feel. It's difficult to
sit in cash while watching the averages move higher day after day.
That's why you must avoid trying to time the markets. You may miss
some down days, but over your investing lifetime, you also risk
missing some of the best upside moves the market will put together.
To put in simply, inconsistent investing will hurt your overall
performance in the long term.
If the increasingly manic business media adds to your angst,
just turn down the volume and focus on smart about your plan to
build wealth. Leave the unnecessary emotions to day traders that
can't afford to miss a single second of the action.
Beat The Markets with Dividend Stocks
eBook Has Arrived!
We just debuted our brand new 275-page eBook, exclusively on
Dividend.com! In this digital-only book, we look ahead to 2012 and
the main factors that could affect dividend investors. A $39.95
value, the eBook is a
Beat The Markets with Dividend Stocks
contains a full economic forecast for 2012, including in-depth
analysis on 65 of the biggest dividend stocks out there. It's a
great way to get prepared for your investing next year! So head
over to the
Dividend.com Premium homepage
now to download your copy.
I hope everyone had a chance to check out our
members-only weekend articles , including new features that
highlight some of the biggest winners and losers from the week that
was, such as analyst upgrades/downgrades and earnings/story stocks.
These articles are a great way to catch up on the week that was in
the markets. We also have a rundown of how various Dividend ETFs
performed on the week.
Thanks for reading everybody. 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