Well that wasn’t so bad, was it?
May has come and gone on Wall Street without incident. The S&P 500 was up 1.5% in the first month of the traditional “Sell in May, Go Away” period. Stocks closed the month at new all-time highs. Again.
So the five-year bull rally marches on, and there’s seemingly no end in sight. Or is there?
A pullback doesn’t appear imminent. After all, pundits have been calling for a broad market correction for more than a year, only to see stocks rise to newer heights every time. The sky-is-falling mentality has been repeatedly wrong in recent months. It’s been more than two and a half years since a correction of 10% or more. At this point, I’ll have to see one before I believe all the doomsayers.
Eventually, though, a major pullback will occur. No rally has ever lasted forever with hitting the reset button along the way. When that correction does occur, you’ll be glad to have a few dividend stocks in your portfolio. Apparently I’m not the only one thinking that way.
Investors have been loading up on dividend stocks in recent months in preparation for a possible pullback. Dividend-heavy ETFs are up 5% year to date, more than double than 2% gain in the S&P 500. Even as stocks are at record highs, some investors are taking up defensive positions.
That investment dichotomy is one of a number of topics we covered at Wyatt Investment Research this week. Here’s what else was on our mind in this Memorial Day-shortened week:
How to Get Growth and Income from FNV Stock– Gold’s comeback may have stalled out with just a 7% rise year-to-date, but a few gold miners have continued to rally heading into the middle of the year.
An Easy Way to Get GDP Growth Back on Track– The U.S. has an ace in its back pocket that could drive the economy to grow faster. And that’s oil exports.
Why It’s Time to Load Up on Dividend Paying Stocks– With the good times rolling on Wall Street, why then are investors suddenly loading up on dividend stocks? For the same reason I’ve been packing my raincoat when it’s 75 degrees and sunny out: human nature.
Is Nike Stock Getting a World Cup Bump? – What happens when the largest sports apparel company in the world meets the largest sporting event in the world? Wall Street takes notice.
A Significant Opportunity to Invest in Gold – Today, we have a rare opportunity to invest in a bear market. But before I reveal this opportunity, I want to clarify WHY you should seek out bear markets for your investment capital.
8 dividend checks from 1 stock – This highly-profitable company rewards shareholders with unannounced “bonus” dividend checks. And it pays them out every quarter. And that’s on top of its regular, scheduled dividends — meaning shareholders are collecting 8 dividend checks a year, all from this one investment. If you’d like to earn some extra income then click here to find out everything you need to know.
Carl Icahn Wants to Send You a 5.9% Dividend Check – Thanks to the existing securities laws, most of the best professional investors are off limits to individual investors. Only the super wealthy can access top investment managers like George Soros, David Tepper, and Ray Dalio. But one of the top hedge fund managers is completely accessible.
The 19.2% Naked Put Strategy – Selling a naked put is the same as selling a covered call. They have identical profit and loss profiles. So why can’t investors use them in retirement accounts?
Top Three Regional Bank Stocks– The top three regional bank stocks offer superior yield and higher year-over-year growth rates than the top three too-big-to-fail banks.
Thanks for making us part of your weekend. Throughout the week, please make sure to visit WyattResearch.com for the information you need to know and opinions you need to read to become a better investor.