richjoy403

THE DUMBNESS OF DIVIDENDS

I am not a dividend investor, however...

Mr. Landry's view of dividends is interesting, but I'm not yet convinced;I would think there would be many studies comparing dividend paying stocks to those that pay no dividend.

I do believe I have read many times that over a period of years, buying dividend paying stocks (especially those that grow their dividends), and reinvesting those dividends, has produced far greater returns than owning bonds...still, that does not negate Mr. Landry's thesis (which is that investors should not consider a dividend as a positive when evaluating the purchase of a stock) .

If one can equate dividends to "value" stocks, I also understand that over the long run, value stocks have historically outperformed growth stocks...again, this does not directly address Mr. Landry's thesis.

Six Striking Trends Emerge from Third Quarter Earnings

The author is correct in all his 6 points. Stocks will continue advancing so long as investors believe companies will SOON have advancing revenues on an annual basis (i.e.; 4th qtr. '09 vs same in '08). Some very easy comparisons are coming up, and if we fail this test...look out below!

As for myself, I tend toward the positive (with stop limits if wrong, this has worked extremely well for the last 4,000 Dow points). However, I do not look for a melt-up, as we still have serious concerns in housing, employment, and bad loans to resolve (all lagging indicators).

Johnson & Johnson's Dividend Hike: Why 6.5% Works

Yikes! >You will not see 22 times earnings on J&J for probably another 30 years>

No intelligent person thinks they can make an earnings projection 30 years out. Therefore, all that follows that forecast has little or no credibility.

A Different Approach to Economic Forecasting: A Hard Look at Whitney's Skill

Meredith Whitney is a remarkably beautiful woman (so I have remarked on it). She built a reputation on her correct call on liquidity problems at banks before it was generally known, so let's all give her the credit she is due.

Her most recent (negative) call on bank and the general economy may also prove to be correct...OTOH, in my experience, those who have made a reputation on a good call often suffer from 'confirmation bias' (tend to seek and believe only that evidence that confirms her earlier position).

Thus, it may be that Ms. Whitney, like others before her, may fall on the same sword that she used so successfully to skewer banks.

I am happily investing in BAC, C, and USB (not day-trading). They are not likely to be 3 or 4-baggers in the next year, but collectively, I am sure I will do very well within 2 years.

Time for the U.S. Economy to Reindustrialize

I'll be brief...what a bunch of whiners spewing their crock of BS!
They'd like for us to turn back the clock to...what 1860?...1960?

And BTW, Japan's "employee for life" philosophy worked only for a few of the very largest manufacturers, and only for a while, as their export economy was growing and they had a labor shortage; but you should look again.

The better approach would be to accept the advantages of what you have and work to improve upon its disadvantages.

China May Be Eying Metallurgical Coal Acquisition

Unfortunately, much of the political class (and the Al Gore class) in this country believe coal is less than worthless. Be reasonable (we have lots of coal), but careful with regard to selling our natural resourses--they are strategic assets.

A Look at Two Chinese ETFs

PARTICULARMAN (Which I suspect is a robot)
I counted 7 pages (105) identical posts of your Warren Buffet questions.

What is your motive?...Your questions include a number of negative assumptions, and display a lack of understanding of markets.

Forget BRIC: Your Portfolio Needs TICK

TICK?...well, BRIC made it big, so why not?

My first impression of TICK is that someone is trying to develop the next in-vogue alphabet designation; thus I'm not convinced TICK is anything more than an alphabet game.

Applied Materials: What Price History Can Tell Us

Interesting charts and discussion of AMAT (which I own).
I'll keep this in mind as I watch the price action following tomorrow's
earnings release...it may also be instructive.

Is Something Big About to Happen?

I too read David Rosenberg (B-fast w/Dave)...I understand that he is negative on the economy and stock market (the macro view), and I read him so as to stay aware of the potential results fromr believing we are headed for la-la land.

However, I am also struck by how he manages to find something negative to say about the most positive stats.

On the whole, I think he is one-deminsional, praying that the bottom falls out so he can say...I told you so!...and collecting the worldwide recognition for calling the fall.

Wal-Mart Does Not Save Families $3,100 a Year

I shop at Walmart (and Costco), and am proud to do so. It is strange that you acknowledge that it is CNBC, and not Walmart, that got the facts wrong; and even stranger that you assume it is Walmart's responsibility to correct any error made by any media source. Do you dare to suggest the same standard applies to the thousands of other businesses? I think your bias is showing.

Of course I don't know exactly how much I have saved, but I do know it is substantial. Furthermore, if not for Walmart (and Costco and the like) other retailers would have much higher prices, and that savings has to be factored in also.

So, I am quite sure I have saved at least $3100 at Walmart (and the like) since 1985 when including the assumption of higher prices if not for Walmart.

If YOU don't like Walmart and other discount retailers, don't shop there!

p.s. I also object to this nonsense about putting mom/pop stores out of business. Those stores pay employees less than Walmart, they provide no insurance, and they offer very limited choice at higher prices. I yet to see a Walmart that was not surrounded by independent stores offering items not available at Walmart...Get over it!

Despite Inflation, The Social Fabric Remains Intact

I have noticed CNBC gives Peter Schiff airtime on an almost daily basis now (he seems incapable of acknowledging good economic news); could it be that they are reacting to their critics who say they are cheerleaders for the market? I tend to agree CNBC tends to go overboard on up days, but there must be more reasoned voices than Schiff's. (In fact, for the benefit of those CNBC critics, it could be observed that CNBC is purposefully using Schiff to put their case in a negative light.)

So, thanks Roger for another good article...yes, we have economic problems; but our world is not ending. Yes, I too am moving more investments off-shore, but I also continue to invest at home.

Smart Investing in the Smart Grid

Bluesky--I don't want wall street to be doing anything that doesn't make sound economic sense (that is not the way to "redeem a modicum of respect from Americans", and lead to the stupid financial products we are trying now to put behind us).

OTOH, developing a financing product for needed infrastructure is one of the things wall street does (and always has done). So, if the THRUST of your suggestion, rather than the details, does make economic sense, it is quite likely to happen.

Has the Market Already Hit Its High for the Year?

Thank you Jeff Miller for a very well-reasoned and articulated article. You appropriately covered both the bear and bull positions. I can't find anything to challenge.

It seems to me the market does need a correction of 10% or so, but the bears keep investing on the dips (are they closet bulls?), and thus have stopped the market from having a 10% correction at least 3 times since March (with dips of only 4-5%).

I am reading both sides, and just in case the bears are right, I have been investing with trailing stops since March...it is working nicely.

Who Thinks This Recession Is Over?

Leftfield: Agreed, politicians have made a mess of their bailout efforts, and will soon do the same to health care (so what else is new?). Unfortunately, politicians respond first to their donors, and if/when necessary, to their constituents. We all complain about it (it is a sport), but do you really think it will change?

I share all your suspicions (and would make even stronger comments on exec compensation), but I MUST INVEST IN THE MARKET I HAVE, NOT THE ONE I WANT.

TereaseE: Yes, some companies have moved production to lower-cost countries (just as they once moved to our own southern states). A few years ago, some were moving call centers to India. (You may have noticed that some are moving them back.) Have you noticed how many foreign companies have established manufacturing operations in the USA?..Their employment FAR exceeds the jobs moved out, so why don't you complain of those new jobs?

It's a world economy, either adjust or don't; but if you don't, you are going to be increasingly unhappy, and will be posting similar notes a long, long time.

The point is our economy is cyclical, and has always been so. We periodically have a recession, and have always had 'downturns' about every 4 or 5 years (and we need them, or inflation would be rampant). The difference today is that this recession was not caused by an overheated economy...it was caused by unusual (and complex and preventable) financial stupidity.

It has been tough on a lot of people, but it is passing. We are growing again (GDP will be up in the just concluded 3rd qtr by 3% or more).

It won't (and shouldn't) go straight up. There will be bad housing and employment data for awhile. Data must get less bad before it is good, to suggest otherwise denies reality.