We are getting more data on housing today, and essentially
nothing new has come to light. The latest numbers are finding
single-family home prices fell for a fifth straight month in
November. At some point, business television will lose the emphasis
on the importance housing will play in the current economic
recovery. Unfortunately for us, Dow 12K is starting to get on the
radar for the pundits, as if it really matters.
There is a bit of a new vibe when it comes to the American dream
of owning a home. Increasingly, Americans are disregarding the home
as an integral part of their nest egg, opting instead to rent.
There's still money to be made in buying and selling real estate,
but for the average Joe, the roadblocks to owning real estate have
gotten much bigger with much stricter lending standards. Many banks
are actually reverting back to requiring 20-30% down payments to
consider a buyer "serious." I stick to the idea that if you are
looking to reap money out of buying a property, focus on
multi-family units where you can take residence and have the tenant
help pay for a piece of your mortgage note. Just be ready to be a
landlord - it's not for everybody. Some of my relatives and friends
have been very successful with this strategy, eventually moving on
to buying larger multi-family properties. It makes sense to start
small at first, though. There's no sense in buying something too
big unless you've tasted life as a landlord and can stomach it on a
This morning, we added two more dividend names to our
"Best Dividend Stocks" List
. Be sure to check out the link below if you didn't see the e-mail
alert we sent out earlier. Today's market action was dominated by
earnings results. Some of the winners included Kimberly Clark (
), Harley-Davidson (
), Verizon (
), BlackRock (
), and Baker Hughes (
). On the flipside, earnings results pulled names like 3M (
), W.W. Grainger (
), American Express (
), and Johnson & Johnson (
) lower. Lots of volatility transpires during earnings season, and
it is a period in the market every quarter that I am not the
biggest fan of. Buying and selling can sometimes get overdone in
certain headline names. Patience is key!
Let's continue this week's series on investing strategy
Investing Strategy #6 - "Be calm, have a plan, and ride it out
through the rough times."
This is tied into having a simple approach in the markets. It also
pays to know which stocks are best to own when things get
occasionally messy. This is what we do best when it comes to our
recommended list, which names the only stocks you should be
considering for new money that you are putting into the market.
Investing Strategy #7 - "Be flexible & sensitive to what the
market is doing rather than trying to tell the market what to do."
This is where we can sometimes see "book smart" investors running
into trouble. Too often we are hear about some of the brightest
minds in the business running a fund that gets in trouble. Being
stubborn about a stock's outcome can cost investors dearly.
Investing Strategy #8 - "The importance of not having and
trading a biased opinion."
We can see times where an investor will love using a certain
product and feels that because they like the product, it will
automatically be a big hit for a company they are invested in
(Krispy Kreme, Boston Chicken are just some examples). Well-liked
products don't always translate into higher stock prices. Fads come
and go, causing stocks to be all over the map.
Investing Strategy #9 - "Execute the plan, don't just 'think'
At some point, one needs to get off the sidelines and get their
investing plan in motion. Waiting for the perfect time is a waste
of time. No one can ever be so great as to time the best time to
buy and sell consistently. That is what turns investors into
Investing Strategy #10 - "Trying to pick tops is a sucker's
This is similar to what I just said above. Many a "smart" trader
have badly timed trying to short stocks that "shouldn't" be going
higher. This also applies to "ringing the register" on stocks long
before the big long-term runs could be getting started.
Check out yesterday's first 5 investing strategy anecdotes and
be sure to read more of these in the daily newsletters as the week
Don't forget to check out our library of
"Learn to Be Rich"
articles which give you snippets about personal finance maneuvers
you should know about. 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
Created by Dividend.com