Today's tape has been all about the monthly jobs number, which
came out much better than anyone had expected. You would have
thought the market would be off to the races, but that kind of
wasn't the case. In fact, the indices ended mixed, as no
progress coming out of Washington remains part of the cloud
overhanging the markets.
Looking at today's tape, there weren't many central themes going
on, but we were watching everyone's favorite stock, Apple (
), which lagged the indexes once again. Wall Street analyst calls
also had a bit of an impact, as McDonald's (
) and Freeport McMoran (
) received some positive notes in the face of recent declines.
Also, Yum! Brands (
) continued its recent dip lower following further Wall Street
caution expressed on the name.
Take Your Seat at the Table - But Don't Expect to Stay for
Many casinos have big poker rooms with tables that can fit over
a dozen payers. You can only play when a seat opens up, of course.
If you ever go during the week, you will likely see mostly the same
faces. It is on the weekend when the new faces make their
appearance (or fresh "meat" as the steady poker players like to
say) with wide eyes and a wallet full of "discretionary" income.
They will come to make a killing as they have been watching the
"Poker World Series" all week and they will mimic what they see
from their poker heroes on TV.
These green (inexperienced) players don't realize how difficult
the game really is. They can't simulate how they'll react during
actual play, with real money at stake - not just sitting at home on
their couch or playing in a friendly game with a bunch of
Stock trading is no different. Much of today's volume is
dominated by institutions and hedge funds that are using every
weapon at their disposal to ride every wild swing. The business
media today has catered their message to keep up with what is
moving quickly. Retail traders are constantly playing catch-up. But
when money meets manic markets, the disappearance of traders'
capital happens all too quickly these days. Once a trader loses
some money, human nature turns to making it all back, and that
usually means find the most volatile stocks - or even worse,
playing in the below $5 a share names. Low prices mean more shares
that one can afford, but unfortunately the names that tend to
rarely cooperate with one's hope to make up for lost capital.
I say it time and time again: to build wealth, you need to own
assets that produce income. If you want your net worth to increase
substantially, you'll need to invest instead in vehicles that
consistently generate cash flow for you. Based on the data we've
seen from the past 80+ years, quality dividend-paying stocks are
the best bet for most people. Harness the power of compound
interest that dividends provider, and over time, you can turn a
small amount of money into a large amount. All you need is a little
patience and consistency to get your finances headed in the right
direction, as well as staying out of the "poker room"!
Our 2013 Dividend Stock Guide Has Arrived!
Our new members-only eBook has just been released! This 250-page
guide to investing in 2013 contains a concise economic forecast for
next year, including full previews for 60 big-name stocks! Be sure
to head over to
and download it and get your game plan in place for all good things
dividend-related in 2013!
Looking Toward Next Week
Looking ahead to the next week for stocks, we will see earnings
results from the likes of Costco (
), Joy Global (
), and Darden Restaurants (
), just to name a few. Throw in the latest economic data and fiscal
cliff updates, and investors will have plenty of news to absorb as
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
Created by Dividend.com