Investors woke up this morning to the news of high tensions in
the Korean peninsula following a military exchange between North
and South Korea.
There are also concerns that other European nations could be
following Ireland's lead in looking for a financial bailout.
Besides these two issues, news of lower-than-expected existing home
sales made for a triple-play of bad news, which has translated into
another triple-digit drop in the Dow. Yesterday had the
ear-markings of a tough day, but buyers woke up in the afternoon to
take us off the lows.
When you have several key issues hitting the tape all at once,
there is little for an investor to do but look at one's portfolio
and consider what holdings could be susceptible if selling
escalates. This is where dogs in a portfolio become even more
pronounced, and illustrates how important having a sell strategy
Elsewhere, I was startled by a study conducted from Limra, an
investment research company, stating that only 44% of U.S.
households have individual life insurance. I started buying term
life insurance once my wife and I had our first child. I am a big
fan of the "Buy term and invest the rest" adage when it comes to
insurance. Term life insurance is not very costly and is a good way
to protect your family against any unexpected events that could
leave loved ones in a financial bind from an untimely death.
Getting back to the markets, the selling was broad-based today.
Commodity stocks led the way lower, with names like BHP Billiton (
), Freeport McMoran (
), and Cliffs Natural Resources (
) all in the red. Elsewhere, MasterCard (
), Monsanto (
), and Chevron (
) got hit as well. Hormel Foods (
) bucked the downtrend, following the company's solid earnings
results this morning.
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section. As always, check out our industry-leading
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Thanks for reading, and I'll see you tomorrow!
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