I’m starting to believe the premise that, due to buybacks and M&A, coupled with the growth in global money supply, there’s too much capital chasing too few equities. I thought for sure this mini correction would last a couple of days, at least.
Good ol’ Ritholtz called a 5% downturn. Nice one, Barry.
“Show me some SFR in Carmel valley that are falling.”
Sure, the primo areas will hold on for the longest, but remember the outlying areas that you so blithely dismiss provide price pressure against those primo areas. That will become more evident, once the Chula Vistas and the Fallbrooks complete the more aggressive phase of their oncoming depreciation.
Thus, dividend-paying firms that provide consumer staples are likely the best bet. Impressive results from companies like Wrigley Jr. Company, Johnson & Johnson, and PepsiCo support this view, and despite their recent success, prices on these firms remain fairly reasonable.
From the byline:
Mathew Emmert, former editor of the Motley Fool Income Investor newsletter, is preparing to launch his own letter, Dividend Gambit, a real-time newsletter service focusing exclusively on dividend-paying stocks. Mathew owns shares of Johnson & Johnson, Pepsico, and Wrigley. (dividendgambit.com)
Poway took a gamble in an attempt to draw Piggington readers to her private service. I’ve seen the same tactic employed, every bit as artfully, on other subscription sites (I’m a basketball junkie of my alma mater.)
Of course, the risk associated with such a move was that Rich would remove CHF from the Bubble Bloggers links, which he did.
In a related note, Tweeter is closing at least 1/3 of its stores. That’s right, the overpriced big screen TV outlet is in deep trouble, and the stock price certainly reflects that fact.
I continue to believe there are money making opportunities for smart, targeted bears. But being bearish on the general market will only get you mounted at this point.
