The choice can, however, be enclosed Investors fear are not. When Trump was first elected, the market rushed to worry about what he would do. The markets have been going up and down since then based on the crazy news that came out that day, but the overall direction was up last year. Is it a stock exchange or a yo-yo?
If you look at this CNN money chart, you may think that “yo-yo” is the more appropriate term:
Fear & Greed Index
Where is the market going from here?
In one form or another, I routinely get the question, “What do you think of the market? Where is it going?” I usually answer politely as expected, but occasionally I startle the person with an answer like, “I don’t know. It really doesn’t matter to me.” My investment goals are Not defined by movements in the market.
Many people generally define the market as the S&P 500. Very little of my overall portfolio is in an S&P 500 index. His movements up or down have minimal effect on my goals. As a value investor in dividend growth stocks, it is in my best interest that stocks be depressed, at least for the short term, and that returns are high. This offers a choice between worthwhile investments, in contrast to the market boom years when it was difficult to find stocks at fair prices.
Focus on solid dividend stocks, not the market
Rather than looking at the market and its direction, investors in dividend growth stocks should focus on quality, price, and terminal value. Below are some high quality dividend stocks that are selling below their value calculated fair value::
– Calculated Fair Value: $ 59.43
– Yield: 2.3%
Chevron Corporation (CVX) is a globally integrated oil company (formerly ChevronTexaco) with an interest in exploration, production, refining and marketing, and petrochemicals
– Calculated Fair Value: $ 134.65
– Yield: 4.1%
Texas Instruments Inc. (TXN) is one of the world’s largest manufacturers of semiconductors. The company also makes scientific calculator products and DLP products for televisions and video projectors.
– Last Price: $ 179.40
– Yield: 2.2%
T. Rowe Price Group Inc. (TROW) operates one of the largest unencumbered mutual and life cycle fund complexes in the United States, with an AUM of $ 776.6 billion as of June 30.
– Last Price: $ 191.07
– Yield: 2.3%
AbbVie Inc. (ABBV) is a global research-based pharmaceuticals business that emerged as an independent unit following the spin-off from Abbott Laboratories in early 2013.
– Calculated Fair Value: $ 418.27
– Last Price: $ 116.43
– Yield: 4.5%
The markets are rising. The markets are going under. Over time, they tend to drift higher. We have seen higher stock prices recently. In these times when we struggle to find stocks at fair prices, we look back and regret not having bought more when the market around us collapsed.
Full disclosure: Long AFL, CVX, TXN, TROW, ABBV,
On the subject of matching items
Tags: ABBV, CVS, CSCO, KO, T,.