Tuesday, August 2, 2011

T20YM Update: Let the Market Correct

It’s been roughly six months since I made my case for Best of Breed dividend stocks.  Since that time, I have let the portfolio run dripping the dividends and re-balancing quarterly. I have taken a brief hiatus from writing for multiple reasons. First and foremost, I was immersed in school work and honestly had no time to analyze individual companies or sectors. Second, and perhaps more importantly, I did not trust the markets sustainability. I could not honestly recommend individual stocks at their current valuations. Sure earnings season went off without a hitch, but these results were inflated by an economy buoyed by the Feds easy money policy. The fact of the matter is that the economic data points over the last quarter have been abysmal.

We got ahead of ourselves, the market needs this correction.

Personally, I hope we break the S&P 500 1249 support. This will give the market a complete flush out that it needs.

I plan on writing an update on my Best in Breed Dividend Stock series shortly. The portfolio has outperformed the market admirably.

Keep your powder dry. Better to miss a few up days than throw money at a sinking ship.

We have more pain coming.



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