Market Wrap-Up for June 1 (BEN, HPQ, MCD, ANF, GLD, NEM, more)

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We had a feeling this morning's monthly unemployment report was going to be a bit of a stinker, and sure enough, it was a dud.

At this point, we will stick to looking at company fundamentals, as we approach the current volatility with the same sense of balance we always do - never too bullish and never too bearish. That said, be sure to catch the moves made today to our recommended list to keep abreast of where your money could be best served going forward. Gold ( GLD ) prices staged their biggest rally in months as some investors shifted money out of equities. Gold miners also joined the gold parade, with rallies in names like Newmont Mining ( NEM ) and Goldcorp ( GG ).

Looking at the markets, Wall Street analyst downgrades easily pushed down several well-recognized names. Those seeing estimates and ratings cut included Franklin Resources ( BEN ), Hewlett Packard ( HPQ ), McDonald's ( MCD ), and Abercrombie & Fitch ( ANF ).

Two Dividend Stocks Removed from Recommended List

We removed two dividend stocks from our "Best Dividend Stocks" list this morning. Please note we recommend selling these stocks if you own them. Check out the names we downgraded here .

"You Can't Teach This Game"

I'm an assistant coach on my son's 9- and 10-year-old baseball team this season, and I've seen even bigger mood swings at the baseball field than I've seen with investors this week, if you can believe it. As a normally positive person, it was a real downer to hear another assistant coach complain during a recent practice that you can't teach the game of baseball. His take is that you either get it or you don't. Great motivator for the youngsters, huh? Obviously, I couldn't disagree more. In fact, I've seen multiple kids on our team progress greatly this season.

Unfortunately, a good number of people (including my coaching colleague) take a negative view of life in general. You'll continually hear these sort of comments from them:

  • "I can never catch a break!"
  • "I just have the worst luck."
  • "I already know it's not going to work."
  • …and so on.

I understand the markets are going through a decent-sized pullback right now. Although it feels lousy, I can tell you the 2008-2009 market downturn was much worse (don't forget the Dow hit 6,500 in March 2009 - we are currently over 12,000). And guess what? Dividend investors came out smelling like a rose when the dust settled. I am not a perma-bull and never have been. Chasing stocks during a melt-up is more painful from an investment research standpoint, because the fear is you are buying stocks after they are already overbought.

How do you avoid the worry and hassle of feeling like a victim? It's simple. You turn down the volume on the screaming market "experts" on TV and you go about your business. Take care of your career, put money to work on a regular basis in the best dividend stock opportunities, and focus on your family and the things you love in life.

As in sports, not every single play will be made. Does that mean you simply shouldn't play the game at all? Of course not, and the same concept applies to investing. If you stay the course and make the appropriate changes in your portfolio over time, you'll come out ahead in the long run. When company fundamentals deteriorate and industries change, some stocks that used to perform well will no longer do so. We can't control how companies adapt to these changes, but we can certainly control whether they remain in our portfolio.

I firmly believe that maintaining a positive attitude can work wonders in your investing. Never think of yourself as a victim. Don't buy into the myth that the markets are against you. Just keep your chin up and press on!

Keeping Extra Powder Dry and Scaling In

During extended periods of selling, the best approach to putting money to work is to tighten the belt and get more money available to pick up quality names when they "go on sale." Also, we always suggest scaling into positions over time, and not trying to load up on what you think is the true "bottom" for a stock. No one has ever sold at the absolute top, or bought at the absolute bottom. Paying lower prices for quality companies is how dividend investors build their fortunes. It's as simple as that.

Year-to-Date Results Just Posted

Be sure to check out the year-to-date watchlist posts up on the site today. You can see how well many of the dividend stocks we are tracking have done through the first five months of 2012. As always, you can find these and other members-only articles on Premium Articles Page .

Our Beat The Markets with Dividend Stocks eBook Has Arrived!

We just debuted our brand new 275-page eBook, exclusively on! 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 free download for paid Premium subscribers.

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 Premium homepage now to download your copy.

A Look to Next Week and a Weekend Preview

Looking ahead to next week, earnings will continue to slowly come in , with reports from the likes of Men's Wearhouse ( MW ), Oracle Corp ( ORCL ), and the J.M. Smucker Co. ( SJM ), just to name a few.

Be sure to catch up with our latest watchlist updates this weekend on Premium , including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs, and much more. And as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List .

Thanks for reading, and I'll see you this weekend! P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in the financial news loop that could affect them.

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 Nasdaq, Inc.

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This article appears in: Investing , Stocks
Referenced Symbols: ANF , BEN , GG , GLD , HPQ

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