Just as the seeds for a healthy pullback were starting to grow, the ECB decided to lower interest rates and once again, the liquidity missile hits the target as equities resume their historic run (more on this thought below).
Earnings were the main source of news moving stocks today. On the upside, credit card processor Visa (V) hit all-time highs on better-than-expected profits. Also gaining on earnings results were names like Prudential (PRU), Metlife (MET), and Seagate Technology (STX). There are a couple of well-known names not getting much investor love after their results, as well. Those stocks pushing lower included International Paper (IP) and Kellogg (K).
It’s funny, there used to be a time when the markets would have healthy corrections. Not anymore, however, as it appears there is a backstop to every sign of a sell-off. Some pundits are making the argument that “bears” are too negative, but then they counter their own argument by telling investors to avoid buying the low-growth defensive stocks. History has shown that paying 20 times earnings for 1% revenue growers is not smart portfolio management. But in this “it’s different this time around” market mindset, we’re made out to be crazy for not paying up for high PE multiples and low yields.Being Disciplined is so Old-Fashioned
While we enjoy seeing positive stock action, we certainly are not averse to seeing stocks pulling back at times. The longer we go without any prolonged period of caution, the more complacent and the more at-risk investors actually become. We have had plenty of stocks we have moved to sidelines on, and they have continued to rise. Granted, these stocks were considered holds and not sells, and our subscribers’ portfolios are probably looking quite healthy. That’s great and all if someone is set to cash out today, but for dividend investors, it’s always been about the slow and steady. Going basically straight up is not normal for income investors, and while it feels good short-term, some better price entry points wouldn’t hurt for those in it for the long haul.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here