As the markets waited to hear from the Federal Reserve for the first time this year (which ended being some of the same chatter as has been the case in recent updates), the averages slipped late in the session to snap the recent Fed meeting up day rally trend traders had been getting used to. A weaker-than-expected GDP may have also added to investor angst.
Earnings were part of today’s storyline as well, with investors cheering the results of Manpower (MAN), Phillips 66 (PSX), and Robert Half International (RHI), while selling the news on names like Boston Properties (BXP), Rockwell Automation (ROK), and ACE Ltd. (ACE). Shares of Chesapeake Energy (CHK) were higher following news the company’s long-time CEO will be stepping down, fueling rumors of a potential sale. Finally, cautious Wall Street commentary had shares of Union Pacific (UNP) and Lennar (LEN) trading in the red.
As always, consult The Dividend Daily for all the latest earnings reports and other important news affecting dividend stocks.
An Actual Headline: “The Dangers of Over-Saving”
It was funny to across the headline above in a personal finance article recently. It never fails that at the first hint we are in any sort of economic recovery, someone steps up ready to wipe away any lessons that should be remembered from our recent troubles. Our economy and those who have been hit hard by it can sometimes tend to fall back into bad habits when given the opportunity. Titles like the one above could give financially vulnerable people the wrong incentive that gets them in the same mess all over again. There’s almost never a balance when it comes to the media, it’s either “the end is near” or “guaranteed prosperity” — either of which can push one to making the worst investment decisions possible.
It’s a great thing to see the economic data come in better, but everyone has their own personal economic data they need to tend to. Forget the macro picture for a moment. What’s your personal balance sheet look like? Whether you are learning lessons yourselves or from things happening to others around you, stay in control and avoid ever getting too down or too giddy. Keep your composure and realize that opportunities are always around, but you have to be looking in the right places. In the end, assets that produce income are going to be the “rock” for any financial foundation. Pay a fair price and your returns will be good over time. Pay too much and it will take much longer to see a return on your capital (and sometimes you’ll lose money when you invest in something too risky or at too high a price). This concept applies to almost any investment class.
Thanks for reading everybody. I’ll see you tomorrow!
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