After I got blown to smithereens in 2000-2001, I restricted myself from even looking at tech stocks, or anything deemed to be “hot.” I rebuilt my business on preferred stocks, bonds and regional banks, trading under 1x book value. As the market cratered in 2001, I was completely insulated from the carnage. However, the damage was already done. Nonetheless, my approach proved to be prescient and it resulted in my business expanding in assets, to new highs, putting me in a great position to play growth again in 2003.
I did not buy a tech stock, at all, from 2001 to 2003. A typical winner for me, during 2002, was buying a new issue preferred stock at $25, receiving two quarters worth of dividends, then selling it at $27. Two points on a $25 stock, over 6 months, was huge for me. True story.
Prepare to dial back your expectations, should this market enter bear mode.
In case you’re dividend hunting, here is a list of companies scheduled to go ex-divvy over the next two weeks.
DLPH, 0.25, 5/12
DD, 0.45, 5/13
LLY, 0.49, 5/13
ACC, 0.38, 5/14
DUK, 0.78, 5/14
GSK, 0.64, 5/14
WHR, 0.75, 5/14
CVX, 1.07, 5/15
AFL, 0.37, 5/19
LUX, 0.89, 5/19
TGT, 0.43, 5/19
MPC, 0.42, 5/19
VLO, 0.25, 5/19
WAG, 0.32, 5/19
MRO, 0.19, 5/19
Sounds boring. But it could be rewarding, if you apply a little leverage to the mix.
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great strategy if your broker offers a low margin rate. the cock suckers at TD want like 6.75%. >:(
Fly, you really think we are heading into a bear market? Interest rates are so low, still. I don’t think we see a bear market until interest rates rise dramatically, stocks are more attractive than bond returns right now.
Also, you really think a 50% draw down in Yelp isn’t enough? this is a company with zero debt on their balance sheet and has grown revenues at a compound growth rate of 69.6% over the last three years.
I am assuming the worst. It just feels like 2000.
The up days generally lower volume, Down generally higher, right now
Did you close CRTO? having a good bounce off the open.
i am out
That’s too bad these are good companies with good long term prospects but as they say a good company isn’t necessarily a good investment.