The markets saw a trickle of daylight as the powers-that-be are
closely watching the market's recent pullback post-election.
President Obama spoke earlier today speech and part of the
subject involved freezing middle class tax increases. While this
move may stem fears for some, all this move really means is further
printing of dollars to pay for the ballooning deficits. With such a
minute-by-minute focus on preventing any such economic slowdown or
drop in market averages, the risk grows for the U.S. and its
ability to one day pay off the enormous amounts of debt piled on
the heap each day.
Getting into today's market moves, earnings played a role in
today's action. Shares of Walt Disney (
), Sotheby's (
), and Microchip Technology (
) did not participate in today's early rally, following their
earnings news. Public Storage (
) and Covidien (
) did however, moving higher on better-than-expected earnings
Be sure to check out all of the latest earnings reports we've
broken down on
The Dividend Daily
Should You Be Selling?
I can't think of many good reasons to sell out of winning
positions. Of course, if you are under financial duress and need
the capital, then your real-life priorities take precedence.
When it comes to selling losers, I urge all investors to develop
their own sell strategy they feel comfortable with. For example,
you should closely examine any position in which a stock has fallen
25% from its 52-week highs. Most stocks that perform well will
rarely see corrections that are greater than 20% their yearly highs
under normal market conditions. Notice I said "normal" markets.
When the markets are selling off in unison and undergoing a big
correction (as we've been seeing since mid-October), it is best to
avoid panicking on all your positions. You may want to tighten your
portfolio some, but cutting quality companies in a panic is never
wise. If anything, you should be stepping up and scaling into your
positions more with a steady and consistent buying plan when market
sell-offs hit otherwise strong companies.
If you own a stock that has broken away from a nicely-performing
market and is seeing further and further selling, an immediate red
flag should pop up. Be sure to examine the reasons carefully as to
why the stock is dropping. These are the situations that separate
the average investor from the great investor.
For example, there will be plenty of traders looking to move in
and out of Apple (
) shares following the recent dive, but unless you have the
discipline to move quickly, playing that game will taint your
vision of the markets (and undermine the entire reason why we
invest in the first place). I can't remember ever seeing daytraders
on the list of the Forbes' most wealthy, and there's a good reason
for that. Wealth is built from buying assets that produce income.
Plain and simple!
New Dividend Stock Recommended Today!
We added a new name to our
this morning, so be sure to check out the
post detailing the upgrade
if you missed the alert we sent out to Premium members earlier.
Looking Toward Next Week
Looking ahead to the next week for stocks, third quarter
earnings will continue to come our way. On tap are results from the
likes of Home Depot (
), Wal-Mart Stores (
), Cisco Systems (
), and Target (
), just to name a few. The focus will also continue to be on the
economic data, fallout from the Presidential election, and as
usual, the latest Wall Street analyst calls.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here