Wall Street Breakfast: Must-Know News [View article]
The market is pricing Greek debt at what it's actually worth, ditto for Portugese, Irish, and other bankrupt nations' debts. If the Fed had not been monetising US debt in various hidden ways, the markets would have priced US debt at what it's truly worth. Indeed, when the Fed buys GSE debt from the Chinese at face value in return for the Chinese buying treasuries at face value, this is tantamount to the Chinese buying treasuries at 50-75 cents on the dollar, the value of the junk the Fed buys from them to get them to buy treasuries.
The governments in the Western countries are eager to buy, on behalf of their taxpayers, assets (such as Greek bonds) at prices that greatly exceed their market value. This is a breach of their fiduciary rsponsibility to their taxpayers. I sincerely hope that their constituents, perhaps in Germany, will put an end to this irresponsible charade.
The 'Sell After Dividend Cut/Freeze' Rule, With Exceptions [View article]
A very sensible and excellent article. However, those who say that the stocks mentioned by the author are down just because of the general market downtrend have a very good point.
The author would be commended if he were to present, in a future article, data over a longer period, and to show the change suffered by the stock which froze or cut its dividend relative to the change in the S&P500 12 months after the dividend freeze or cut. My hunch is that the author would indeed find a correlation that concurs with his current thesis.
Having been a dividend investor for over thirty years, my experience is that dividend cuts are usually (perhaps 80% of the time) a sign that a stock will underperform.
Wall Street Breakfast: Must-Know News [View article]
The governments in the Western countries are eager to buy, on behalf of their taxpayers, assets (such as Greek bonds) at prices that greatly exceed their market value. This is a breach of their fiduciary rsponsibility to their taxpayers. I sincerely hope that their constituents, perhaps in Germany, will put an end to this irresponsible charade.
The 'Sell After Dividend Cut/Freeze' Rule, With Exceptions [View article]
The author would be commended if he were to present, in a future article, data over a longer period, and to show the change suffered by the stock which froze or cut its dividend relative to the change in the S&P500 12 months after the dividend freeze or cut. My hunch is that the author would indeed find a correlation that concurs with his current thesis.
Having been a dividend investor for over thirty years, my experience is that dividend cuts are usually (perhaps 80% of the time) a sign that a stock will underperform.