stocks one of the "most under-invested asset classes out there." He warned that if federal budget deficits are cut by the $4 trillion that some in Congress have suggested, growth will slow, and, by extension, stock returns will be reduced.
#Jim fink option trading plus#
If the dividend keeps climbing, their thinking goes, you stay ahead of inflation, plus you stand to reap capital gains if the share price goes up.īlackRock CEO Larry Fink called U.S. Shares of those companies have not climbed as high as shares of smaller companies since the market bottom, so in addition to offering a payout, those stocks today look cheap.īoth Gross and Josh Peters, an equity strategist at Morningstar, mentioned Proctor and Gamble ( PG), which yields 3.2 percent, and has a history of hiking dividends. As the economy slows, and the bull market of the past two years wobbles, investors are seeing value in big blue chip companies - the kind that pay dividends. If there was any consensus on better places to get income in your portfolio, most managers seemed to like dividend-paying stocks, though of course with stocks you risk losing your principal. MoneyWatch blogger Allan Roth has been recommending similar high-yield CDs. They are backed by the FDIC, and thanks to a fairly small penalty for early withdrawal - two months interest - it's an investment that's almost as liquid as cash. Ross Levin, a Minnesota-based certified financial planner, said he has been putting clients in 5-year Ally Bank CDs that yield nearly 2.5 percent, not a windfall, but more than an equivalent bond. You can find decent yields if you are willing to give up safety, but you have to make the tradeoff. And unfortunately, none of the money mangers or financial planners at Morningstar offered a perfect alternative. All Rights Reserved.That conundrum is a big problem for individual investors seeking safe income, especially retirees, for whom safety is crucial. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.ĬFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY OR SELL FUTURES, OPTIONS, OR CURRENCIES. DON’T TRADE WITH MONEY YOU CANNOT AFFORD TO LOSE. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THESE MARKETS. DISCLAIMER: FUTURES, OPTIONS, AND CURRENCY TRADING ALL HAVE LARGE POTENTIAL REWARDS, BUT THEY ALSO HAVE LARGE POTENTIAL RISK. TRADING SECURITIES IS NOT SUITABLE FOR EVERYONE. ONLY RISK CAPITAL SHOULD BE USED TO TRADE. THERE IS A SUBSTANTIAL RISK OF LOSS ASSOCIATED WITH TRADING SECURITIES AND OPTIONS ON EQUITIES.
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