We got our first taste of multiple Q4 earnings reports this
morning, but the market could not climb back from its recent
Looking at some companies that reported numbers today, investors
cheered the results from Yum! Brands (
) and Costco (
). On the flipside, the reactions weren't as positive for Alcoa (
), Chevron (
) (company cut its outlook), and Cummins Inc. (
) (which also announced job cuts).
Wall Street analysts were busy, upgrading stocks like Ralph
Lauren Corp (
) and M&T Bank (
), helping boost those shares to end in the green today. In
contrast, a bit of cautious analyst commentary had stocks like
) and Johnson Controls (
) moving lower.
What's My Role? (Am I the Bull or the Bear Today?)
I have been closely following the big controversy surrounding
comments made by former General Electric (
) CEO Jack Welch. Mr. Welch recently insinuated via Twitter that
the recent Friday jobs number reported by the government may have
been inaccurate. (For the record, throughout my career, I have
always taken governmental economic data with a grain of salt.
Ignoring it totally, however, would be a mistake, since the data
always helps move the markets one way or another.)
With the Presidential election in focus this year, many folks
will take stances claiming conspiracy theories or conflicts of
interest. Of course, we all know any time politics is involved in a
conversation, emotional reactions tend to not be too far off.
Anyone that reads my newsletters knows I shake my head often
regarding today's mainstream media and its "cheap pop" tactics used
to generate ratings. Don't get me wrong, there are plenty of
talented people out there who produce great commentary for viewers,
but I also see a whole lot of "amateur-hour" work as well. In some
cases, I look at the information as no better than local news
coverage. Anyone that relies on the local news to break down
economic and business stories is likely going to get nothing more
than a generic, watered-down, ill-informed overview of where things
I have witnessed many super-smart market watchers get sucked
into the media vortex over the years, distracted by sensationalist
headlines. The idea for most business channel segments is to
present conflicting opinions on events that have recently unfolded
or may be set to unfold soon. Turning on your business media
platform of choice, it is commonplace to find the bull/bear debates
happening, similar to politics-focused programming. Several people
will be talking over each other, sometimes to a point of on-air
screaming. As the viewers sit there mesmerized, the fact of the
matter is whatever knowledge is discussed gets overwhelmed by the
theatrics of the guests.
Most of our Dividend.com readers have an investment time window
that differs greatly from what the mainstream business media seems
to target. We dividend investors look forward a lot further than
just 3 hours, one day, or one week. We don't care if the news is
good or bad, but rather, we want an objective opinion on what to
expect going forward. Also, accountability is essential if one is
to build a trust in whatever or whomever the source is. In this era
of information overload, finding all the vital points necessary to
formulate a solid investing plan is truly what investors
Here at Dividend.com, we try and avoid the many pitfalls of the
mainstream media. We certainly will take all the noise in (as
excruciating as it can be at times), but we don't ever believe
investors should react to any of it. Being the main filter for tens
of thousands subscribers is what we do best (and we'll continue to
do so, conspiracy theories and conflicts of interest aside).
Bottom line, market watchers will always have strong opinions.
It's our job to avoid overreacting to these media theatrics, as
such actions could do serious damage to our portfolios.
An Important Note Regarding the Best Dividend Stocks List
We want to make sure everyone understands that the stocks on our
Best Dividend Stocks List
are the names we currently like for new investor capital,
regardless of what date the stock was first recommended on. If and
when a stock is removed from the list, we will clearly state
whether the stock should be sold (which is rare but occasionally
will happen), or simply held in one's account until we see a better
entry point or catalyst.
And here's one last thing to remember about what we do here at
Dividend.com: it's not just the names that we recommend that can
help you build wealth, but also the things we try to steer you away
from that are just as important. Forget about speculative or penny
stocks, chasing unprofitable IPOs, and listening to the manic
talking heads in the business media!
A Dividend Capture Strategy for Active Investors
We now offer complete U.S. dividend data for all
members, so anyone that focuses on "Dividend Capture" trading
strategies should have plenty of good stuff to research each day.
Just check our enhanced
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Speaking of dividend capture, Dividend.com Premium members can
also access a 9-page report we published on the essential elements
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out here on the
Thanks for reading everybody. I'll see you tomorrow!
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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