It is the highest for a while. I do not think the market value is justified.
If there is a sell-off, the dividend stocks and the high-valued stocks could fare better and the cyclical stocks that are doing quite good recently will suffer most.
I still prefer high-yield corporate bonds (i.e. junk) and bonds from emerging countries over municipal bonds, which may have more defaults if we include those unrated munis.
Cisco is my surprise winner after boosting dividend rate from 1.8% to 3.2%. I expected it to recover in 3 years and most of my holdings have over 12% (some as high as 25%) in a very short time. Thanks for the herd who pays outrageous premiums for dividend stocks. Are they fools or I'm a bigger fool? Only time can tell.
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