This morning's monthly jobs report came out
better-than-expected, as more new jobs were created than analysts
anticipated (not sure if the impact of McDonald's hiring 60,000
plus in April was the main reason for the surprise).
We made some more changes to our
Best Dividend Stocks List
yesterday, downgrading several energy-related plays. When you see a
commodity move to the downside like we've noticed this week, it is
often a sign of a trend change. We think this is a great time for
investors to rebalance their portfolios if they have substantial
exposure in the commodity/energy space. As I have been mentioning,
rising commodity prices have put a cap on the ongoing economic
recovery, and the law of supply and demand becomes a factor sooner
or later, as consumers simply begin to refuse to pay exorbitant
prices for items like gasoline and certain foods.
Following some afternoon trepidation about Greece leaving the
EU, the markets stabilized and closed higher, finishing well off
the earlier highs. Earnings results helped stocks like CF
), Fluor Corp (
), and EOG Resources (
). On the flipside, sellers moved out of names like Weight Watchers
), Cimarex Energy (
), and Washington Post (
). Oil prices dropped once again, finishing the week with a drop of
around 15%. Silver prices were down nearly 30% on the week.
I was watching a local newscast this morning before heading into
the office, and they were talking about how gas prices could drop
20-30 cents just in time for Memorial Day. What a great deal for
consumers! They fail to mention we are paying over $1 more per
gallon than last Memorial Day - if we get the price drop that
experts predict. The media certainly loves to spin things
positively, don't they?
Enough of the negative commodity talk. Let's continue our
ongoing series on success as a positive way to close out the
1. "Successful people remain flexible and open to changing their
direction for the better, while others will simply stop in their
tracks when trouble arises."
The hot word for this in business today is "pivoting." Lots of
innovative companies are more nimble than some of the conglomerates
from years past. That said, they can maneuver through product
cycles much more quickly, and are able to stay current with
consumer desires. This same concept applies to an individual's
ability to find success, regardless of age. If you are keeping up
with the latest trends, chances are, you will be able to get in
position to prosper. At Dividend.com, we are always looking ahead
when it comes to where our dividend ratings should be. If we see
signs a company could be slowing down, chances are their dividend
payout level will follow suit. Remember to stay on top of things in
your financial life, rather than ignoring any warnings signs. You
could be sitting on an investment or be in a career that is on the
2. "Successful people do not let any pre-determined thoughts on
money stop them from realizing what is real, while others accept
wrongful financial concepts as religion."
We often see individuals influenced by the wrong information, or
even worse, listening to unqualified people for business,
investing, or financial advice. If you are going to be successful
yourself, you will need to arm yourself with the best sources for
information in the area you want to specialize in. Sometimes even
parents will get it wrong, so always do as much due diligence as
possible. The easiest way to learn is to ask questions - which many
people will tell you I'm a master at!
3. "Successful people can build fortunes from nothing, while
others believe luck is the real reason for advancement."
Many successful businesses began with little money in their
coffers. I often hear of new entrepreneurs that want to start a
business, but are looking for friends and family to fund the entire
operation from the start. Let me give you a quick tip on this: if
you don't put your own "skin in the game" when it comes investing
your own money into the project, you will not have the same sense
of urgency as if you did. You could be looking at not only a failed
venture, but many damaged relationships in the process. In the end,
it's not about luck. It's about doing the proper homework necessary
to determine if the business idea you have is actually a real
business, or just a hobby that will never generate real
Looking ahead, the deluge of earnings reports will begin to slow
down a bit next week. Look for quarterly results from heavy hitters
like Walt Disney (
), Macy's (
) and Nordstrom (
), just to name a few.
Be sure to catch up with our latest watchlist updates this
, 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
. Quick note: be sure to check out the
"What's New on Dividend.com Premium"
post we published today, as well. We've added a ton of new features
to our service over the past few weeks!
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
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