Dividends4Life: Favor Dividend Stocks Before Others

Favor Dividend Stocks Before Others

Posted by D4L | Sunday, July 03, 2011 | | 0 comments »

The reality is that there is no solution to Greece other than a default and/or currency devaluation. You can't fix a situation with too much debt without austerity, and the people will likely not accept much more austerity. Is there really a path that doesn't lead to Greece bowing out of the Euro, going back to its own currency, and then devaluing that currency to "fix" its own problems? If we are long-term investors (and I am), does this situation warrant holding off on committing new money into stocks until this shakes out? What if it takes a year or two or three to come to a head? I would suggest that it would indeed be worth it.

My focus is for the most part on dividend stocks. Since the companies I own are primarily defensive and somewhat recession resisitent, I'm not selling these positions. I will continue to reinvest dividends to a certain degree, but I'm going to hold a significant chunk of cash to utilize for future situations where volatility presents itself. I also have significant exposure to gold and precious metals which will hedge against uncertainty, a global debt crisis and rampant currency devaluations.

Source: Seeking Alpha

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