Market Summary- Q2 2012
Australia’s champion racehorse Black Caviar is unbeaten over twenty-two races. Think of her as a growth stock with four legs. With a brilliant bloodline and a huge fan base—she even has her own Facebook page—Black Caviar is turning into the most popular racehorse since the legendary Phar Lap.The five-year-old mare prevailed in Britain’s premier racing event at Royal Ascot late last month. But unless you own part of Black Caviar, you’re unlikely to make much money from placing a bet on her fortunes. “The Wonder from Downunder,” as she is known, pays close to...
Read MoreJuly 2012 Newsletter: Are You Worried About Europe and the Impending Fiscal Cliff?
“I increasingly think Europe and the impending fiscal cliff are likely to lead to a new recession and a further decline in the market.” -Comment from an MFA client- Some wonder if a “buy-and-hold” philosophy is appropriate given all the predictions that stocks are going to decline sometime this year due to bloated government debt in Europe [and the US], the fiscal cliff [expiration of the Bush-era income tax cuts] and every other issue that causes economic concern. With the continual repositioning of stocks within the funds we buy on your behalf, as well as our monitoring and rebalancing,...
Read MoreMarket Summary – Q1 2012
Should Investors Buy High-Dividend Stocks? With bond yields still hovering around historic lows, some investors may be tempted to consider dividend-paying stocks as a way of generating income from their portfolios, presumably with the benefit of not having to sell from their principal. But before embarking onthis strategy, it is important to understand several considerations: SIMPLE MATH: When firms make dividend payments, it is relatively common for the stock price to decrease on the ex-dividend date by an amount roughly equal to the dividend paid. For example, an investor...
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