Make no mistake about it: market pullbacks like the ones we've
seen in the past couple days are a healthy part of building a
long-term foundation for investors. Getting rid of shaky hands will
eventually strengthen a stock's shareholder base and will lead to
shallower pullbacks in times of overall market volatility.
Speaking of shaky hands, did anyone catch the action in momentum
stock F5 Networks (
)? The stock is currently down $35 (-23%) as we approach midday.
This move illustrates is the danger of chasing high-beta momentum
plays. The beauty of investing in solid dividend stocks is that
unless there is some sort of accounting blow-up, you almost never
see a market response like we are seeing today in FFIV. That's not
to say that all dividend stocks are safe though - that's why we
"Best Dividend Stocks"
As for the rest of the market, we are seeing a second day of
sellers booking some recent gains. There are few names that are
standing out on the upside, but the downside is full of negative
earnings reactions. Some of the major stocks that stood out on the
downside today included PNC Financial (
), Freeport McMoran (
), Union Pacific (
), and Parker-Hannifin (
Gold and Silver prices tumbled as both metals broke key
technical levels. If you have been waiting on the sidelines to gain
exposure to the metals' sector, you will have some good
opportunities to initiate positions in the coming weeks. One last
thing to consider today as you see some of your favorite names
perhaps have a down day as part of an earnings reaction, is that
you should avoid trying to be a "portfolio hero" and try and jump
in on the first day of a stock's fall. Wait for the selling and
noise to subside in whatever the stock you own that may be going
down, and you will likely have better moments to build on any
Continuing with this week's theme, here are some more common
money excuses people use and my responses to them:
Excuse #11 - "It's cheaper to eat out than eat at home."
My Response: The better answer may be that is is much more fun to
eat out, but certainly not cheaper in most cases. There's nothing
wrong with learning to work your way around a kitchen or even reach
for a box of cereal or TV dinner once in a while if time
constraints kick in.
Excuse #12 - "I'll save next year when I'm making more money."
My Response: There is no better time to start saving/investing than
when you actually have a job. For many, this excuse can be the most
deadliest when it comes to building wealth. Everyone knows the
older you get, the more expenses you incur (getting married, having
kids, vacations, cars, etc.).
Excuse #13 - "You have to leverage debt to become rich!"
My Response: This is a dangerous play for many that try and speed
up the road to wealth. We have all heard the amazing stories of
real estate tycoons that pulled off incredible wins, only to get
caught off-guard when markets turned. The financial road is
littered with failed money gambles that were based on leverage. The
banks have always been guilty of encouraging investors to roll the
dice a bit too much when times were good. We have seen the fallout
from that the last couple of years.
Excuse #14 - "I need to invest in a car."
My Response: The words "invest" and "car" almost never belong in
the same sentence unless you are extremely knowledgeable about the
collectible car market.
Excuse #15 - "If everybody got out of debt, the economy would
My Response: Worrying about the economy's collapse should never be
the consumer's concern. Living debt-free should be an ultimate goal
of yours, but giving yourself a license to spend recklessly is just
You can check out Tuesday and Wednesday's daily newsletter for
my responses to the first ten money excuses.
Be sure to check out our latest Top 100 Dividend Stocks on Our
Watchlist post we published earlier today. Also, don't forget to
check out our out new
section that contain numerous topics of interest to dividend
investors. 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