Market Wrap-Up for Oct. 1 (F, WAG, MRK, LO, more)
Stocks rebounded this morning after yesterday’s steep losses. Investors and traders seem to have ignored the United States’ partial government shutdown and pushed up the major indices into positive territory to kick off the first trading session of the fourth quarter. The better than expected ISM Manufacturing survey no doubt helped add to the bullishness on the day.
Shares of Ford Motor Company (F) rallied today after the company reported that its sales rose 6% in September. Also rising higher today were shares of Walgreen Company (WAG), after the drugstore chain reported fourth quarter earnings above analysts’ estimates. Furthermore, Merck (MRK) shares got a boost today after the company announced that it is reducing expenses by $2.5 billion by 2015, partially through 8,500 job cuts.
Among the stocks in negative territory today were PayChex (PAYX), following its first quarter earnings report that did not impress investors, and Lorillard (LO), after it announced that it is acquiring British e-cigarette company SKYCIG. Also, shares of Torchmark (TMK) edged lower due to a Wall Street analyst downgrade.
Moreover, gold mining stocks like Barrick Gold (ABX), Goldcorp (GG), and Newmont Mining Corp. (NEM) got crushed in today’s trading due to the steep decline in the price of gold. The yellow metal has once again fallen below the $1,300/oz level.
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Interested to see how certain dividend stocks have performed so far in 2013? Then don’t forget to check out today’s Dividend.com Premium Articles to see our monthly posts showing how various dividend stocks have performed in the first nine months of 2013.
Yesterday, we published “The Unofficial Dividend.com Guide To Being An Investor.” Out of the 50 tremendous and informative tips that the article lays out, the final piece of advice stands out the most to me: There’s no shame in a simple portfolio.
I know I’ve discussed this before, but I feel like it’s worth repeating. Investors should not feel the need to burden themselves with a large portfolio filled with many different kinds of assets and securities. In a long-term wealth building investment strategy, investors should look to have the simplest and most efficient portfolio imaginable. It is easy to buy whatever stock, bond, ETF, or other asset that catches your eye to add to your portfolio, but at a point it will become increasingly difficult to track everything you own. The complexity of a large portfolio will most likely be a drag on your long-term gains.
Ideally, you should stick to a simple portfolio of a few diversified stocks. When you have the desire to add to your portfolio, just add to the positions of the stocks you already hold, ideally waiting for pullbacks for more attractive buying opportunities. This way it will be easier for your to stay on top of the performance of your stocks and the research that goes into assessing and readjusting your portfolio. Not only will a simple portfolio strategy be easier to manage, it will also give you less stress and more time to focus on other aspects of your life.
Thanks for reading everyone! Be sure to check us out on Twitter @dividenddotcom. We will see you tomorrow.
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