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Doug Carey, CFA

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  • Bernanke Outdoes Greenspan... Again [View article]
    Prediction- Bernanke will eventually use the disasters in Japan as an excuse for QE3.
    Mar 16 10:24 AM | 8 Likes Like |Link to Comment
  • Mainstream Haters Deny Gold Its Fundamentals [View article]
    Perfectly said- The haters want to pretend it's an investment. So many people still don't understand what is going on. One dollar in 1913 is worth five cents today. It will be worth less next year and the year after that.

    Thank you Wall Street Cheat Sheet for a well thought out article. Keep 'em coming!
    Jan 10 04:54 PM | 8 Likes Like |Link to Comment
  • 4 Safe Fixed-Income Funds for Retirees in 2011 [View article]
    PFN fell 80% in 2009 from its peak in 2007. Yet your article title has the word "safe" in it. You might want to rethink that.
    Feb 16 12:32 PM | 7 Likes Like |Link to Comment
  • Back to the Overconsumption Future [View article]
    What a great article. You just summarized so many things I have been telling people over the past year, especially with regards to the savings rate. This is where a lot of people who predicted negative GDP growth for 2010 got it wrong. They assumed the savings rate would go to 10% and stay there. They were way off on that idea. I also completely agree with you that it will take another downturn for consumers to deleverage again.
    Feb 2 03:32 PM | 7 Likes Like |Link to Comment
  • Build America Bonds Not Extended [View article]
    So are you for the program or against it? It is pure theft from taxpayers to states that overspent. How anybody can support this theft is beyond me. It is a decent start that the BABs program won't be extended. There is much more to go.
    Dec 8 10:08 AM | 7 Likes Like |Link to Comment
  • How Apple Can Help You Retire When You Want [View article]
    Microsoft has been increasing their dividend at about this rate each year for the last 10 years. It is completely possible and very likely in my opinion for Apple to do the same.
    Jun 28 10:03 AM | 6 Likes Like |Link to Comment
  • What Will $2 Million Get You In Retirement? [View article]
    Six representative stocks. I would never recommend only investing in six stocks, but instead I am recommending investing in a basket of stocks that have similar qualities as these do. I will make that more clear next time. Thanks for pointing this out.
    May 16 02:58 PM | 6 Likes Like |Link to Comment
  • Road Map for Managing a Dividend Growth Portfolio [View article]
    I love the premise of this article and I enjoyed reading it. However, I do have one major problem with when to sell a holding: "(6) It underperforms the market in total returns (price + dividends) for three years running.
    This will happen A LOT with high dividend stocks in an irrational bull market. I haven't done the research, but I am willing to bet that in the late 90s you would have been selling most of your high yielding dividend stocks because growth stocks did so well during this time. I would delete #6 altogether in terms of a rule.
    Feb 23 05:09 PM | 6 Likes Like |Link to Comment
  • Fed Holdings of U.S. Treasuries Surpass China's [View article]
    There is no conservation of money when it can be printed and it's backed by nothing. That's the problem. And yes, you do have the flow of money correct. The Fed prints money, buys treasury bonds, then gives the interest to the Treasury. There is no free lunch though. The citizens of the U.S. lose purchasing power due to higher inflation. It's a stealth tax basically.
    Feb 6 12:49 PM | 6 Likes Like |Link to Comment
  • Dividend Investing: Make Sure Free Cash Flow, Not Debt Issuance, Backstops Your Investment [View article]
    Nice article and great point about dividends and how they should come from free cash flows and not debt. This is exactly why I do not include any companies with a debt to equity over 70 in my portfolio. In fact, I have very few with a debt to equity above 20.
    Feb 2 09:47 AM | 6 Likes Like |Link to Comment
  • Intel: A High Dividend Yield Stock for Your Core Portfolio [View article]
    Let's just look at the past five years. EPS for Intel grew by 7.9% annually. Dividends grew by 14.5% annually. How did dividends grow by more than EPS? There are at least two ways this can happen: 1) The payout ratio increases and 2) The company diverts spending from other projects, R&D, acquisitions, etc. That is part of becoming a slower growth, value company. Revenue that once went towards investments and not dividends and now diverted towards dividends.
    Jan 31 04:54 PM | 6 Likes Like |Link to Comment
  • GE: Everything That's Wrong With Capitalism in America Right Now [View article]
    Yes, last year. That is because GE Capital took a nosedive. Before 2008 GE Capital made up more than 50% of profits. Read the article carefully before commenting. I never said GE Capital made up 50% of profits after they crashed.
    Jan 27 11:38 AM | 6 Likes Like |Link to Comment
  • Johnson & Johnson and the Contributions of Dividends to Total Return [View article]
    Yes, that is right. The dividend yield would increase dramatically in the scenario I gave. My example, although possibly unrealistic in terms of the stock price not moving, was there to show how important dividends can be vs price movements. But yes, one would expect the price to rise if they continued increasing dividends over time.
    Jan 5 01:50 PM | 6 Likes Like |Link to Comment
  • What Will $2 Million Get You In Retirement? [View article]
    You'd be surprised at how many 60-somethings have $2 million plus and will run out of money if they keep spending like they're spending. I've seen it first hand.
    May 16 05:18 PM | 5 Likes Like |Link to Comment
  • How Much Do You Really Need To Retire? [View article]
    Thanks RS. I agree and this is why most people need to be on a budget, especially in retirement.
    Mar 8 11:02 AM | 5 Likes Like |Link to Comment