Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
AI Tech Stock PORTFOLIO NAME OF THE GAME - 29th June 22
Rebounding Crude Oil Gets Far Away from the Bearish Side - 29th June 22
UK House Prices - Lets Get Jiggy With UK INTEREST RATES - 28th June 22
GOLD STOCKS ARE WORSE THAN GOLD - 28th June 22
This “Bizarre” Chart is Wrecking the Stock Market - 28th June 22
Recession Question Answered - 28th June 22
Technical Analysis: Why You Should Expect a Popularity Surge - 28th June 22
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Fellow Investors, What I’m Thankful For…

Stock-Markets / Financial Markets 2012 Nov 22, 2012 - 10:31 AM GMT

By: Investment_U

Stock-Markets

Marc Lichtenfeld writes: On Thanksgiving, most of us in the United States will be with friends and family, sitting around festive tables filled with way more food than we need, sharing all of the things that we’re thankful for.

Yes, I’m thankful for my family, the abundant meal, puppies, rainbows and all of the heartwarming stuff like everyone else. But this is an investment e-letter, so here’s what I’m thankful for when it comes to the financial markets…


I’m thankful for this bull market that has been in effect since the lows of March 2009. Since then, the S&P 500 is up 108%.

Even better – as Alexander Green says, this is the most disrespected bull market in history. Despite the fact that the market has doubled in just three and a half years, there’s still a very high degree of skepticism.

According to the Spectrem Group, 48.6% of affluent investors (those with $500,000 or more of investable assets) are sitting on the sidelines. That’s a lot of firepower that can return to the market and push stocks higher once these investors decide they’re missing the party.

Low Interest, Low Inflation and Housing Recovering
I’m thankful for low interest and low inflation. While low interest rates make it tough for savers, it’s a great environment for investors. The low rates have driven stocks upward, and if you can get a loan, the banks are giving away money. Thirty-year fixed mortgages are available in the low threes. I recently obtained a loan at 3.25%. For someone who wants to pick up some investment real estate, you can’t ask for much better than that.

I’m thankful that housing is recovering. The National Association of Home Builders Index, a measure of sentiment, is at its highest level in six years. The eight-point jump in present sales was the largest since 2002.

When housing prices rise, people feel more confident. Even if they have no plans to sell, they feel wealthier and will be more comfortable spending more money, which sparks the economy.

Harnessing the Power of Dividends
The low rates also have awakened many investors to the power of dividend investing, particularly investing in dividend growth stocks. By investing in stocks with growing dividends, investors not only tend to own higher-quality companies, but the investment outpaces the ravages of inflation. That last statement is a critical point in my book, Get Rich with Dividends, which shows investors how to earn double-digit yields and/or returns over the long term.

By the way, that’s something else I’m thankful for – the fact that Get Rich with Dividends was so well received it became an Amazon.com bestseller, hitting No. 1 in “Investing.” So if you already read it – thank you very much.

If not, or you know someone who could benefit from learning how to conservatively create wealth and income for the long term, there are only 33 shopping days left before Christmas. Thank you in advance for filling loved ones’ stockings with copies of the book.

Cheers to All the Fearful Investors…
I’m also thankful for panicky investors. I love when people dump stocks because the market is falling, or because of an election, or because taxes may rise. Yes, those things can be scary, but in the long run, stocks go up. They always have and this time is not different.

There have always been troubles – the Depression, World War II, the Cuban Missile Crisis, double-digit inflation, terrorism, etc. But through it all, the market has continued to climb higher. When scared investors sell stocks, I go in and scoop them up. That’s how you make real money in the stock market.

I’m especially thankful for all of you who read this column. Without you, I wouldn’t be able to jump out of bed every morning, excited to go to work. It is truly a blessing to love what I do and to be able to write about whatever market topics I find interesting, It’s a dream job that, quite frankly, I never would have even imagined having 16 years ago, when I was first breaking into the industry as an assistant on a trading desk, having chairs flung over my head into a bank of monitors when the computer regularly locked up.

I’m thankful that, today, no one throws chairs over my head. I’m very thankful for that.

Lastly, as rancorous and difficult as the past few years have been, I’m thankful I live somewhere that has free elections and markets. Much of the world does not have that luxury. While the government, the economy and our markets have problems – serious problems – that need to be addressed, I would still rather contend with these issues than live in a place where my life and prosperity are determined by autocrats and dictators.

As has been said about both capitalism and democracy – they’re the worst systems, except for all of the others.

I hope you have a wonderful Thanksgiving holiday filled with good times, laughter and some good stocks in your portfolio.

Good Investing,

Marc Lichtenfeld

Source : http://www.investmentu.com/2012/November/what-im-thankful-for.html

Editor’s Note: But what if you don’t have the time to put together a stock watchlist for yourself, or don’t even know where to look? That’s where The Oxford Club comes in. We’ll do the work for you, showing you what stocks to buy and when to buy them. Not only that, the Club offers something for every investor – from stock market newcomers to seasoned veterans – and provides ample opportunity to diversify through several model portfolios. Take a look at the full list of benefits that you’ll receive when you become a member of The Oxford Club.

Copyright © 1999 - 2008 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in