On a more serious note about the stock market, I think that now is a great buying opportunity. The P/E ratio of the S&P 500 is below 13 which is about where it was in February/March 2009 when it began its 70% to 80% climb. How many people here wish they had been buyers instead of sellers when the market was at the bottom 16 months ago?
In general, companies are quite profitable today. They just aren't hiring new workers yet. So, if you've got some extra coin in the bank earning a whopping 1% return, consider putting it to work in the stock market. BTW, I'm practicing what I'm preaching since I put another 45K into the market today and that's a sizeable chunk for me.
The above comments are strictly my non-professional opinion. No guarantees apply. Invest (or not) at your own risk. I'm not a stock broker, financial advisor, or anything of the sort. I'm just a retired engineer who enjoys shooting and thought I would pass along my unprofessional opinion to fellow shooters. Shoot well and enjoy life.
Here is a pretty good article on NLY. It is a Real Estate Investment Trust that deals in mortgage backed securities. It must pay out 90% of its income in dividends. Its high dividends are unlikely to be steady. It could be a good investment as part of an overall portfolio but has significant and unique risks. Consult your Financial Advisor to see if it would be a good addition to your portfolio.
Yeah, I am a big fan of those high yield low beta stocks like Duke. You're probably not gonna hit it big overnight but you are going to preserve capital, beat inflation and at the very least keep up with the overall market over the long haul.
The markets have a lot to do with this mess we're in.....way too many thought the grass was greener on the market side.......thought they could sell the farm, sell their parents business's .....just invest in the markets and live on easy street. WELL most would be a lot better off investing in them selves and their neighbors......there ain't much protein in all that paper. one of the biggest problems with we Americans is that we are too worried about setting on our asses after we become nonproductive......than about all that time in between.......I've never met a government worker yet that had anything on his mind than staying out of sight and protecting his retirement benefits. People that invest in the markets seem to have the same attitude.......OH that's right.....over half of us are Gov employees.
If everyone invests in, and lives off paper.....then who produces the profits?
Easystreet, I'm not that confident in the stock market to redirect my 401K into it. I put it in a fixed interest account almost four years ago, because I had a feeling what was coming. Didn't lose a dime, and made money (very modest money) while others were losing large amounts. I wouldn't mind investing again at the bottom, but I'm not confident that we've seen the bottom. Frankly I'd rather convert my 401K to cash and sit on it. Instead, I took a loan out on my 401K. I pay myself the interest (only 4.65%, but that's more than the stocks are returning). As for use, it's paying off some higher interest loans. I'm trying to gets all my ducks in order because I think there are harder times coming.
When the federal debt is finally addressed, cash will be trash. Own something tangible when they reprice the dollar and the value of the asset will adjust to the new lower value of the dollar.
Many think owning gold is the answer others prefer a stock like Warren Buffett's Berkshire Hathaway where they just bought all of the BNSF railroad stock to gain an investment in huge real estate assets.
Hang on to your hat when, after the election, Obama's debt reduction committee make their suggestions.