Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
Oh, that wistful and nostalgic Paul McCartney tune, written in the final glory days of the Beatles. Despite band tension, uncertainty, and, likely, a lot of bruised egos, this was proof that progress and greatness could still exist. Funnily enough, Paul hated the final mix of the song and in expressing so, caused the band to rip further apart.
Fans wept as a fantastic chapter in music history came to a close while the rest of the west continued to fret about the Soviets and the world coming to an end. The year was 1969 and while it simultaneously felt like the world might end and things could never be the same again, life went on — an important fact for us dividend investors to note.
What does the famous Beatles’ song have to do with dividends? Well, a similar long, and very winding road on the path to a rate hike has definitely caused tension, uncertainty and bruised egos amongst investors. An example is a good friend of mine who bought shares in Valeant Pharmaceuticals when it was a mere embryo, then felt its meteoric rise followed by its dizzying spiral.
Rest assured there have been a few bruised bank accounts for those who insist on merely dancing with their stocks rather than marrying them. I believe if you like it then you should put a ring on it — or at the very least, give it a Stop Loss.
On Saturday’s episode of “Dividend Dose”, we will discuss the imminent rate hike, what it will mean to us as long-term investors and what it means to the economy as a whole.
Much like the pain of a bandage being ripped, a rate rise will prove immediately hard on your stocks but good in the long run. So while your accounts gently weep, the rate rise is a crucial step towards healing and is certainly a better alternative to inflation — a very unwelcome side effect of prolonged interest-free money.
Tune in Saturday. The show will be ready for your listening pleasure as of 10 a.m.
Talk to you then!