The dividend run is not over, and these stocks are positioned to pay
I’m the
lucky dad of teenage boys. Financial markets remind me of teenage boys:
brilliant, rewarding, inspiring at times and other times frustrating, erratic,
and just plain stupid. I’ve found the key to dealing with both is consistency,
clear objectives, and conviction.
And although
many market observers may describe the language of the Federal Reserve as vague
and obtuse, I’m starting to think that Dr. Yellen and Company share my “the
market as teenage boy” philosophy. They want rates to return to some form of
normalcy, but the economic conditions must warrant the action first.
They waited
and waited before finally taking action in December 2015, raising the base
federal funds rate a quarter of a percent. This signaled a desire to return to
more realistic interest rates while reiterating that it will be an exceedingly
long process to get back to their target rates.
And the
market, like a teenager, pouted as the S&P 500 pulled back 11% from
December 2015 to February 2016.
Source:
InvestorPlace
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