“After radically scaling lending during the financial crisis,” the Times tells us, “banks and the lending arms of the automakers have started to issue loans more aggressively.” In other words, the banks (and the automakers’ lending affiliates, like GMAC) have learned absolutely nothing from the worst financial crisis since the 1930s. Or, more precisely, they have learned the most deplorable lesson of all: They can lend recklessly, and the taxpayer will bail them out.
Fortunately, I think we’ve got another six months (perhaps a little longer) before we have to take large-scale defensive measures against the next bear market. However, it’s not too early to begin transitioning your portfolio toward a more conservative posture. On the stock side, I advise you to focus sharply on the small, select group of stocks (and sectors) that still offer solid value in this increasingly overvalued and speculative market. I continue to be excited about the water utilities offering nice dividend yields.
Source: InvestorPlace
Related Articles:
Investments for the Next Bear Market
Posted by D4L | Friday, March 11, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.