irondoor91

Will You Look Back on Today as Your Greatest Missed Opportunity?

Are stocks riskier than bonds? There was a time in the long-distant past that investors thought so and that demanded to be compensated for it by pricing stocks at a yield greater than the bond yield. As recently as a year ago, stock dividend yields on the S&P were at the lowest in history. Stock mutual funds had one of the lowest % holding of cash in history. What happend since then? Stocks down 15% and dividends maybe up slightly. I doubt if mutual fund cash is up any, since the funds are having net outflows. The only thing that has kept S&P dividends somewhat up had been the financials, since they were north of 35% of the S&P weighting. Where are the financals dividends going? Down, that's where. Of course, their yields may stay up reasonably as a group since the stock prices have come way down.

For value guys, there is nothing more attractive than stock prices going down. My thinking is that you will be even happier and more eager to buy a year down the pike.