While the focus on holiday shopping continues ("Cyber Monday"
being the story of the day in media land), the realization that
someone has to pay those bills inspired some nervousness early on
in the market day.
The news flow waqs fairly light, but companies in the news today
included UnitedHealth Group (
), which was slightly lower after management trimmed their 2013
profit guidance. In contrast, McGraw-Hill (
) gained a touch on news the company was selling its education unit
for $2.5 Billion.
Wall Street analysts were also back in action, with Citigroup
once again initiating Apple (
) with a Buy rating. The firm apparently have several analysts
covering Apple's stock. You can't have enough buy ratings on one
stock I guess! As for another interesting upgrade call, Deutsche
Bank sees a good entry point for shares of nuclear utility play
) despite the worries of a dividend cut growing. Elsewhere, we had
cautious Wall Street commentary pushing shares of McDonald's (
) and H.J. Heinz (
) (valuation call as shares hit all-time highs) lower by the
"This is the Last Time, I'm Serious"
It almost never fails. Each year before the holidays many people
will talk about skipping the chaos and insanity of shopping on
"Black Friday," yet almost very year, we reach new heights as far
as record sales numbers go (not to mention all the videos of people
going wild or brawling over sale items). It's just another aspect
of human nature: we talk about doing one thing and end up doing
something else, for better or worse (usually worse!).
For those who may have overdone it on the holiday spending, the
reality will soon hit as the credit card bill comes in, but don't
worry, the credit card company "will work with you" and ask for
just the minimum. Aren't they super-kind? They're willing to let
the fees add and rake in much more over time than they would have
normally received. Minimum payments are the biggest trap of credit
cards, yet many somehow see them as a benefit.
The desire to have the latest handbags, shoes, gradgets,
clothes, etc. is a common theme we see everywhere we turn. The
"gotta have it" syndrome runs rampant, but many economists will
label the holiday sales pop as a characteristic of a strong
economy. If you ask me, running up credit card bills on expensive
items one can't afford will not be beneficial to the economy in the
long term, and especially for the many that will spend the next few
months working just to keep the credit card tab current. This is
money lost that can be growing in assets that produce income. Oh
well, hopefully people's mentality will change over time. In the
interim, human nature taking its course is a pretty safe bet.
At Dividend.com, our message will remain the same. Your money
must work for you and not the other way around. Invest smart and
don't let the masses negatively influence your long-term financial
I hope everyone had a chance to check out our
members-only weekend articles, including new features that
highlight some of the biggest winners and losers from the week that
was, such as analyst upgrades/downgrades and earnings/story stocks.
These articles are a great way to catch up on the week that was in
the markets. We also have a rundown of how various Dividend
performed on the week.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here