I do agree with the comment above of buying high dividend yield stocks.
Posted on 09/14/2010 5:13:28 AM PDT by facedodge
Wild gyrations on Wall Street have made U.S investors leery of buying individual stocks and skeptical that the market is a fair place to park their money.
In an Associated Press-CNBC poll of investors, 61 percent said the market's recent volatility has made them less confident about buying and selling individual stocks. And the majority of those surveyed -- 55 percent -- said the market is fair only to some investors.
The survey confirms that average investors have been growing more concerned about the stock market as a safe place to invest for retirement. And news about the market has been unsettling for ordinary investors of late: More than 60 percent of those surveyed said they had paid attention to news reports about swings in the stock market.
Perhaps as a result, investors have been moving their money away from stocks and into bonds, which are generally more conservative investments and less volatile.
Louise Pollard, 72, and her husband have decided to shift the bulk of their portfolio into bonds after the market nose-dived two years ago. The pair, a retired engineer and computer systems librarian who live near Salt Lake City, remain comfortable financially. But they don't foresee their finances climbing back to the level of three years ago.
"At this point, I would not want to get back into regular stocks," Pollard said. "I don't have any confidence in the stock market, to be honest. It's just a gut feeling."
(Excerpt) Read more at finance.yahoo.com ...
Actually, this high degree of investor uncertainty can be interpreted as good news for investors.
Smaller investors typically sell low and buy high; nor are many of them properly diversified.
There are hundreds of stocks now paying higher yields than Treasury securities of any maturity. Plus a number of those companies raise their dividends regularly. Bonds do not do that.
Take heart. All will be well.
Buy the dips. Sell the rallies. 8 out of 9 days up look for profit taking soon. Good luck.
Buy stock in local companies that have a history of steady growth and pays a decent dividend. Stay away from local bank stocks but look at the local utility companies, especially gas companies and water companies.
I was saying this a few weeks ago. 200 up or down is the new 40. Barely makes a headline anymore. Even a 300 point change is hardly noticed.
“Take heart. All will be well.”
What part of the WS industry are you in?
Yes we are!
I’m an investment adviser at a small firm.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.