Market Wrap-Up for June 24 (ORCL, LEN, JPM, GS, ACN, PSA, more)

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Yesterday's late-day rally regarding an agreement for Greece on a bailout plan with the EU/IMF was not enough to stabilize traders' concerns. The markets opened down and drifted lower for much of the day.

Earnings may have had a bit to do with the somber market action, as shares of Oracle ( ORCL ) and Lennar ( LEN ) traded in the red following both companies' subpar earnings results. There wasn't much help from the financial sector either, as JP Morgan ( JPM ) and Goldman Sachs ( GS ) ended near their lows of the day. Other names that lagged included Coach ( COH ), Goldcorp ( GG ), and Marathon Oil ( MRO ). A couple of companies that bucked the selling included Accenture ( ACN ) following the company's earnings beat and Public Storage ( PSA ) which traded higher following an analyst upgrade.

I'm not sure how many of our readers heard the story about Washington Nationals' manager Jim Riggleman resigning yesterday, despite his team winning 12 out of the last 13 games. There was an apparent breakdown in talks regarding the team picking up the manager's contract option in 2012, and he informed the President of the club if he didn't have a deal in place by last evening, he would quit. Sure enough, no deal was hammered out and he resigned.


Some people will say he should never have walked out on his team (my first reaction), and should have just stuck it out for the rest of the year, regardless of his outlook for next season. The other thought is that the team would have likely gone in a different direction anyhow, and he was just a "lame duck" manager. Any way you look at it, Riggleman's decision to quit suddenly was a knee-jerk reaction - the kind of decision that many investors make all too often.

Research shows that knee-jerk moves or emotional decisions can significantly affect your investment returns. According to a recent survey (part of the Barclays Wealth Insight series) that polled more than 2,000 high-net-worth individuals from around the world, more than 40% of wealthy individuals wish they had more self-control over their financial behavior. Barclays further found that emotional trading can cost investors up to 20% in returns over a 10-year period. The biggest problem that I constantly bring up is the short-term focus individuals have when it comes to monitoring their investment decisions. How many times do you see investors react to a business news story with a trade idea, only to panic when the stock position initially falls? Human nature makes it hard for us not to react negatively when positions don't initially reward our decision to buy a stock. This is why I wanted to develop our patented DARS Ratings System - because investing in dividend-paying stocks is one of the few areas of investing that has consistently produced outstanding results for investors.

As for Jim Riggleman and what will be his move from here, it remains to be seen if his knee-jerk gamble will have paid off. Most baseball people will likely take a stand that he put his personal interest before the team's interest. It's tough to argue against that point. Investors need to remember this example as they think about what their investment goals really are. Do you want to spend your investing life trying to get rich day trading, chasing the next big stock or religiously watching business television night and day to find the next big thing? My advice would be to do what the wealthiest people in the world do: accumulate assets that produce income over and over (dividend-paying stocks, positive cash-flow real estate properties, building or acquiring businesses), instead of spending hours and hours a day watching for business guest stock picks, reading message boards and tweets, or whatever the current flavor of the day is. Market coverage is manic and will remain so. As the market was turning positive the gurus were out yelling about moving money into growth names (trading at high PE's and usually the most risky). Several days ago, it was all about seeking safety in more conservative names. What's tomorrow's message? It's anyone's guess.

I want investing success for everyone that reads our work and subscribes to our Dividend.com Premium service. There will be ups and downs along the way, but if everyone stays the course, you stand a great chance of meeting the goals of building wealth and financial security. Everyone who reads this newsletter knows I will be persistent when it comes to this message.

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Looking ahead to next week, quarterly earnings will continue to trickle in as we get set to see how well corporate America did in the second quarter. Watch for earnings results from the likes of Nike ( NKE ), General Mills ( GIS ), and Monsanto ( MON ), just to name a few.

Be sure to catch up with our latest watchlist updates this weekend on Dividend.com 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 . And if you haven't already, be sure to check out the "What's New on Dividend.com Premium" post we published recently to get up to speed on all the great new enhancements we've made to our service.

Thanks for your support everybody and thanks for reading my newsletter too! Please pass this on to anyone you think we can get inspired and educated about building wealth and using common sense to do so.

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 The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: ACN , COH , GG , MRO , PSA

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