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本帖最后由 oldpigwang 于 2012-7-5 10:06 AM 编辑
Ride out a Rocky Summer With Dividend Payers
By Kevin Chupka | Breakout – 1 hour 6 minutes ago..
we could have a nice fall rally if we get through the summer without any major disasters.
With the Fourth of July in the rear-view, we have officially entered the very heart of summer. So what will the dog days look like for the markets? Can you make any money in the summer stock doldrums?
Breakout welcomed Carol Pepper, CEO of Pepper International, to offer some thoughts.
Not in the market 100%. "They're having at least 30-40% in short term corporate bonds because unlike governments that are broke, corporations still have money." With corporate bonds yielding about 5%, the average Joe may not get rich off of them, but it's better than losing that money in a tough summer market.
It's no surprise then that Pepper suggests investors "look for things that have income, let's look for things that have cash flow that are not affected just by the stock market." She offers an ETF like the iShares Dow Jones Select Dividend Index (DVY) as an example. The keys for her are that the ETF is large, liquid and unlevered. "In a weak market the market likes cash flow and that's what you get out of dividend stocks."
Moving away from the dividend payers Pepper also puts her seal of approval on the SPDR S&P Utilities Sector ETF (XLU). "People have to have electricity, they're always keeping the lights on. These are basic, basic things, but in a risky market basic works for you."
Much like those corporate bonds, a utility ETF isn't going to make you rich but Pepper says it's a good place to wait through the summer.
She says "we could have a nice fall rally if we get through the summer without any major disasters." But understand that you're gonna have to live through probably a couple of ugly months and then by the fall you'll be rewarded for holding those positions."
Breakout is Yahoo! Finance’s daily all-out, roll-up-your-sleeves, dive-in, interactive investing show, offering fresh segments throughout the trading day. If you love making money, if you want to protect what you have, if you’re passionate about understanding these crazy markets, you’re in the right place.
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