My old trader's gut must have been acting up yesterday after my post about a bumpy road ahead. Contrary to what the "always buying" market pundits are saying about the markets shouldn't be going down, I welcome am welcoming a pullback here to give the market a bit more of a foundation-building feel to it. If you haven't noticed, every down-tick is met with buying as if any pullback is a guaranteed reason to jump in for a trade. The market has seen lots of momentum, and it would be nice to just shake a little bit of the "got to get on board the runaway train" mentality.
Today's drop wasn't pretty, with oil prices shooting up over $7 a barrel. We continue to make moves to our recommended list, taking off seven "aggressive" names from our recommended list this morning. Be sure to check out the post if you did not read the e-mail alert we sent out earlier. In other dividend-related news, investors that read our work should not have been surprised by the news book retailer Barnes & Noble ( BKS ) was suspending their dividend payouts. We have repeatedly warned readers the near 7% dividend yield was unsustainable. Hopefully many heeded our advice to stay away.
Elsewhere, shares of recommended play V.F. Corp ( VFC ) spiked up nearly $7 after the company's earnings results. The company did raise EPS guidance, but what a move on a big down day. Genuine Parts ( GPC ), another name we like closed down over $2 after reporting numbers. The company did however announce a 10% dividend increase. Wal-Mart Stores ( WMT ) closed lower following the retail giant's earnings release. Home Depot ( HD ) gave up the day's gains despite a better-than-expected earnings report and news the company boosted its dividend. Selling was fairly heavy all around with some of the biggest drops occurring in the financial and commodity space. Names like Goldman Sachs ( GS ), Morgan Stanley ( MS ), U.S. Steel ( X ), and Freeport McMoran ( FCX ) saw decent percentage losses. FedEx ( FDX ) also got hit hard, down over $5 likely due to today's spike in oil prices.
More interesting data being released today about how little minorities have invested in the financial markets. Only one in four African Americans and one in six Hispanics reported owning stocks, bonds or mutual funds, according to a new Washington Post-Kaiser Family Foundation-Harvard University poll. In addition, only 46 percent of blacks and 32 percent of Hispanics said they had an individual retirement account or any similar retirement arrangement. Half of whites said they had stocks, bonds or mutual funds, and two in three said they had IRAs, 401(k)s or similar holdings. The poll found that blacks and Hispanics also tend to use other financial instruments less than whites. For example, 18 percent of blacks and 30 percent of Hispanics said they had no checking or savings account, often leaving them to use costly check-cashing stores and other outlets to handle their financial transactions. Only 5 percent of whites reported having no checking or savings account.
Unfortunately minority investors were hit hard during the real estate bubble as well. Financial literacy is still badly need in schools for all races if we are going to ever get individuals prepared for what needs to be done with one's finances as one goes through various stages of their life. The financial markets can be very intimidating and the financial media often doesn't do a great job of explaining long-term benefits of investing smart. With ratings being the number one concern, it's all about what is moving in the markets by the hour, and how "traders" can profit. If there was ever time for a new media channel on television that could take investors by the hand, this would be it, and I would embrace the chance to leave my mark as well. For now, we will continue on our quest through Dividend.com and hopefully one day, an opportunity will arise that we can play a big part in.
I am really enjoying the radio gigs I am doing so far and here are the next two I am scheduled to be on later this evening:
WEAA-FM "Wealthy Lifestyle Radio with Deborah Owens" (Baltimore, MD) - This is a 25 minute live interview on 2/22 at 7:00 ET. They will take call-ins from the audience. The Wealthy Lifestyle program is live and interactive. It airs on Tuesdays, from 7-8 p.m. EST on WEAA 88.9 FM, a National Public Radio (NPR) station that serves the Baltimore/Washington metropolitan area, on the campus of Morgan State University.
KRCN-AM "WINNING ON WALL STREET" (NATIONALLY SYNDICATED) - This is a 5-10 minute live interview on 2/22 at 7:30pm ET. Each interview is also taped and rebroadcast on Saturdays on the GAB satellite. Winning on Wall Street is a nationally syndicated show. Marc Mandel of Winning On Wall Street interviews many top financial personalities The show is heard daily and Saturday during drive time (5-6pm MT) in the Denver Colorado front range on KRCN 1060 am and across the globe. Shows can be accessed through ITunes. The station carries 50,000 watts.
Thanks for reading everybody and please pass this on to someone you think can use some financial motivation!
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