There was an interesting read in the Wall Street Journal this morning, talking about some Federal Reserve officials considering pushing the inflation button to try and fix what is ailing the economy right now.
Doing something just to do something is never a good idea. Maybe if they hadn't intervened in the normal economic downturn we were supposed to have, (as is the case in every economic cycle), we wouldn't be looking to experiment with monetary policies right now. I am already annoyed of gas prices headed back toward $3 a gallon. I don't even want to think about what other everyday expenses will hit us all in our pocketbooks.
Meanwhile, Wall Street is celebrating market gains, but when I see commodity prices screaming higher, I know this will eventually hit the consumer in many ways that will not benefit those who are not invested in the high-beta momentum stocks of the day. I am also concerned the gold trade is going to seduce many into a false sense of security. Talk to some people who are actively investing and they will bring up the subject of gold in the first minute of any conversation. Short-term, gold prices are technically okay, but making big long-term bets will be where the retail investor will eventually get hit. There is nothing wrong with taking advantage of the near-term buying frenzy as long as you keep positions small, but also be nimble and ready to ring the register when the pullback inevitably comes.
There was an interesting, but not surprising survey out a few days back saying forty percent of U.S. workers are planning to delay their retirement due to concerns about out-living their savings and fears of rising health-care expenses. More than half of the survey respondents also mentioned they have cut back on their daily spending. This is all well and good, but there needs to be an emphasis on getting some of those savings to work and build new income streams with the aid of high-quality dividend-paying stocks that can be found on our Best Dividend Stocks list. Be sure to also check out our new "Monthly Income Generator" that can help you schedule monthly dividend checks throughout the year.
Getting back to the market today, Pepsico( PEP
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