Again, if one is an agile trader (I am not) one should be able to do very well in this very volatile market. On the other hand, long term investors holding shares in companies paying nice dividends should be happy with some of their returns, and another opportunity to accumulate shares that are on sale.
Watching this economy and the politicians flounder (or is it "founder"?) reminds me of many classic country/western songs and their great hooks. Maybe some more of that later.
There is an interesting op-ed piece at MarketWatch today. I am particularly buoyed by the third myth, that the US is sliding into socialism.
For a system allegedly being strangled in its bed, U.S. capitalism seems to be in astonishingly robust shape.And that's why I like to a) accumulate shares in good companies when I can; and, b) accumulate shares in companies that pay robust dividends. On a day that the market plummets, those companies are still going to be paying their dividends, and if one is able, can use the dividends to buy shares on sale.
Numbers published by the Federal Reserve a few weeks ago show that corporate profit margins have just hit record levels. Indeed. Andrew Smithers, the well-regarded financial consultant and author of "Wall Street Revalued," calculates from the Fed's latest Flow of Funds report that corporate profit margins rocketed to 36% in the first quarter. Since records began in 1947 they have never been this high. The highest they got under Ronald Reagan was 30%.
There is more and more talk of deflation. I see suggestions of deflation in the fast food restaurants and not-so-fast restaurants as I travel around the country this summer. I honestly don't know how some of these restaurants continue to survive; the competition is severe.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.