Saturday, May 3, 2014

Penny For Your Thoughts?

        So, it has been 16 months since my last post.  I've been busy.
       
        Enough about me; back to the market.  Several dummies out there have been stating the market is overvalued, undervalued, etc.  The only thing the dummies have in common is that they make their statements, with no back up or even a reason why they think what the think. 

         As for me, the market is as irrational as ever.  Mutual funds an folks buying when a stock is too high and selling when a stock is too low is driving the market into backwardness (not sure if that is a word).  With the emergence of 401(k)'s and IRA's over the past forty years, the average Joe has a voice in the market, which drives it into madness.  The average Joe also states that Wall Street is fixed and if you aren't in the game there, then you will lose in the end.  Not entirely true, as these same statements by both the average Joe and the expert dummies, still follow up there statements without an explanation why their statement is true.  If you were not a dummy making those statements and you know the market is fixed, then you would know how it is fixed and would be able to take advantage.  If you are truly going to make a statement, then at least present your case with facts that back up the statement, rather than throwing out a naked statement on the internet.  I turn a deaf ear to the statement, unless it has back up.

         That being said, the market as a whole is overvalued as the overall earnings do not back up valuations.  There are still good buys out there, however.  As we all know, dividends make up approximately 70% of the gains enjoyed by the market over the long term.  If you want to beat the market, just throw your money in ATT at a 5% dividend yield and increases the dividend every year.  All the professionals were telling their clients how well they did in 2013.  My company's investment managers were patting themselves on their back about a 21% gain in 2013.  I let them know the overall market had a 37% gain, so the 21% is a bit of a let down.  Dummies.

Anyway, stocks to keep tabs on are BAC, which might be increasing its paltry dividend of four cent per year.  SIRI is close to issuing its first quarterly dividend.  STEV is extremely volatile, but has big time upside.  I own positions in all three stocks just mentioned, so I am a little biased.  Those three companies should be given a look, at least.  Good luck in 2014!