I missed most of this day as I was traveling, but heard the news. Take a deep breath for a moment and let's get some facts on the table. I wrote earlier today that the market weathered the earnings season in a very healthy way and corporations did give relative good guidance for 2007.
So China took a hit, which reminds seasoned investors of the Russian ruble crisis back in the late 90s and the long-term capital hedge fund crisis, as well. Our stock market will weather this storm.
Inflation is low, relative interest rates are also still low. The Federal Reserve has taken no upward action in five months -- next step is lowered rates. Former Chairman Greenspan has warned of a recession. That is his sixth warning in the last two years. Not discounting it, but his armchair quarterbacking has a bit less crunch to it.
1) Bank of America (NYSE:BAC) -- stock was down $2 today and the current yield is 4.3%
2) Wells Fargo (NYSE:WFC)-- was down $1.28 to $34.39 sporting a current yield of 3.2%
3) Citigroup Inc. (NYSE:C) -- was down $2.08 to $50.60 and yielding 4.1%
These are three quick high-yielding ideas for now. I will submit more for you tomorrow morning. For now, hang on and realize we will get through this. History does repeat itself and other nation's economies do affect ours, but the U.S. is standing strong and solid. Corporate earnings are not going to evaporate over this correction.
Georges Yared is the author of recently released books "Baby Boomer Investing...Where do we go from here?" and "Stop Losing Money Today" For more info go to http://www.georgesyared.com.
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Reader Comments (Page 1 of 1)
2-27-2007 @ 9:35PM
ALHAYS said...
The market will drop like a rock on Friday of this week.
Alvin
2-27-2007 @ 9:37PM
ALHAYS said...
The DOW will drop like a rock on Friday of this week.
Alvin
2-28-2007 @ 12:36AM
Ezio Panegos said...
Is PDSC going to die? They claim that they are selling more and more,but is it enough to keep them going?
2-28-2007 @ 10:40AM
steve holben said...
Excellent reminders and advice. I've been investing for 35 (?!) years and my Dad has been investing since 1934!!!. Been a lot of ups and down in that time, and with the proliferation of "experts", the cornucopia of baloney disguised as investment advice is fuller that at any time in hostory. This is why fundamentals are sooooo important; as well as patience.
3-01-2007 @ 1:16AM
Stephen said...
Inlight of the 3.5% correction in the market, a dip that only has a 0.2% chance of occuring, our investments in normal portfolio content is challenged. I have heard before of the importance of considering dividend based portfolio accounts and this report confirms same. We all need to analyze where we are in light of the correction and make appropriate changes.
2-28-2007 @ 4:33PM
Joseph said...
The so called market is not for the faint of heart--
in my long life, I have seen up and down----you can't time it, so go long--good idea---buy good companies that pay nice dividends and forget about it