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Market Wrap-Up for Jan.25 (KMB, VZ, HOG, AXP, JNJ, MMM, more)
1/25/2011 4:11:00 PM
We are getting more data on housing today, and essentially nothing new has come to light. The latest numbers are finding single-family home prices fell for a fifth straight month in November. At some point, business television will lose the emphasis on the importance housing will play in the current economic recovery. Unfortunately for us, Dow 12K is starting to get on the radar for the pundits, as if it really matters.
There is a bit of a new vibe when it comes to the American dream of owning a home. Increasingly, Americans are disregarding the home as an integral part of their nest egg, opting instead to rent. There's still money to be made in buying and selling real estate, but for the average Joe, the roadblocks to owning real estate have gotten much bigger with much stricter lending standards. Many banks are actually reverting back to requiring 20-30% down payments to consider a buyer "serious." I stick to the idea that if you are looking to reap money out of buying a property, focus on multi-family units where you can take residence and have the tenant help pay for a piece of your mortgage note. Just be ready to be a landlord - it's not for everybody. Some of my relatives and friends have been very successful with this strategy, eventually moving on to buying larger multi-family properties. It makes sense to start small at first, though. There's no sense in buying something too big unless you've tasted life as a landlord and can stomach it on a larger scale.
This morning, we added two more dividend names to our "Best Dividend Stocks" List . Be sure to check out the link below if you didn't see the e-mail alert we sent out earlier. Today's market action was dominated by earnings results. Some of the winners included Kimberly Clark ( KMB ), Harley-Davidson ( HOG ), Verizon ( VZ ), BlackRock ( BLK ), and Baker Hughes ( BHI ). On the flipside, earnings results pulled names like 3M ( MMM ), W.W. Grainger ( GWW ), American Express ( AXP ), and Johnson & Johnson ( JNJ ) lower. Lots of volatility transpires during earnings season, and it is a period in the market every quarter that I am not the biggest fan of. Buying and selling can sometimes get overdone in certain headline names. Patience is key!
Let's continue this week's series on investing strategy anecdotes.
Investing Strategy #6 - "Be calm, have a plan, and ride it out
through the rough times."
Investing Strategy #7 - "Be flexible & sensitive to what the
market is doing rather than trying to tell the market what to do."
Investing Strategy #8 - "The importance of not having and
trading a biased opinion."
Investing Strategy #9 - "Execute the plan, don't just 'think'
Investing Strategy #10 - "Trying to pick tops is a sucker's
Check out yesterday's first 5 investing strategy anecdotes and be sure to read more of these in the daily newsletters as the week goes on.
Don't forget to check out our library of "Learn to Be Rich" articles which give you snippets about personal finance maneuvers you should know about. As always, check out our industry-leading "Best Dividend Stocks" List for the top dividend names to put money into right now.
Thanks for reading, and I'll see you tomorrow!