Dividends4Life: Rebalance Gold, Seek Dividends

Rebalance Gold, Seek Dividends

Posted by D4L | Wednesday, October 05, 2011 | | 0 comments »

The gold rally really got crazy. One strategist abides by former money manager Jim Rogers's axiom "Sell euphoria, buy panic." When gold hit its record high in August, it had been on a virtually non-stop, decade-long 600 percent upswing. Its decline has been dramatic as well, with a 9 percent pullback in the past two days. "For the past seven weeks, I have been telling people to rebalance gold and sell partial positions on gold," said Jeffrey Saut, chief investment strategist at Raymond James Financial.

David Kotok, CIO of Cumberland Advisors,said "The U.S. stock market is cheap. The dividend yield on the S&P 500 index exceeds the interest income on a 10-year riskless US treasury note, which is a very rare occurrence." Kotok says to invest in dividend-paying stocks, and ETFs in the same vein. He cites Wisdom Tree Dividend ex-Financials Fund DTN.N.

Source: International Business Times

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