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Global Dividend Stocks

Posted by D4L | Wednesday, November 10, 2010 | | 0 comments »

The Fed’s money printing is the main reason the S&P 500 is up 81% from its March 2009 closing low. The rally occurred even though companies were net buyers of only $61 billion and investors pulled $52 billion out of U.S. equity mutual funds and U.S. equity exchange-traded funds. There is no way hedge funds, pension funds, and sovereign wealth funds had the buying power to push up the market cap of all U.S. stocks nearly $8 trillion in that period. That buying power had to have come indirectly from the Fed through its debt purchases…

So for average investors buying and holding stocks has an element of “playing chicken” to it. I don’t advocate market timing, but I am not a blind buy-and-holder either. Most of the smartest investors I talk to, that are actually long equities, recommend holding big global companies whose stocks pay healthy dividend yields. I think this is a sound strategy.

Source: Forbes

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