Tuesday was a total watch and wait day by our markets, as they really want to hear some soothing words from the Fed. Janet Yellen testifies before Congress today. Much hangs on her words.
With European markets up nicely, and our own futures ahead by a similar amount, that being in excess of 1%, as of 6:00 a.m. EST… perhaps today will finally be the launch of the relief rally from these grossly oversold conditions.
If it is, it will likely be both tradable, and a great opportunity for those who would like to lighten up some, or even all… as, if we are going into recession with the rest of the world, we will then dive into the depths of a real Bear Market; or, so I am now of the belief.
I’ve been asked if I have abandoned my strategy, and the answer is No. Portfolio dividend income grew by 46% for all of 2015. It is very interesting that the more recent dividend increase ‘pay raises’ have been much smaller of late, and is telling me that large corporations are hunkering down, preserving cash, and preparing for leaner times. It had never occurred to me before that a close monitoring of my own dividend income could serve as a great proxy and harbinger for the telling of when corporations are battening down their hatches for tougher times, as they perceive them to be coming. Makes perfect sense though, doesn’t it?
Here’s to your successful investing!
Harold F Crowell