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  • Highest Yielding Stocks Going Ex-Dividend in December [View article]
    Surely, you mean traders or speculators here and not investors. While, it might appeal to some to chase the 1-2% return (on average) that is implied in this trade, there is not a single example out there of building wealth by following these type of arbitrages.

    Sure, the extra 1-2% is gravy if someone has a primary long term strategy and is in cash right now and looking for the next big opportunity (Buffet's loaded gun, elephant hunting analogy). If this is the long term strategy, then good luck!!

    Cautionary note here...In theory, someone could do this every quarter and accumulate their way to millions. In reality, the market is really efficient about these sort of arbitrages and as soon as enough people start doing it, the excess return goes away.
    Dec 01 10:37 am |Rating: +4 0 |Link to Comment
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