The market headed to another solid close for the trading week. Stocks as well as gold prices have been booking solid gains over the past few days.
Plenty of earnings headwinds will continue into next week, as investors look ahead to what the averages will be doing when earnings begin to ease up by mid-May or so. Leading the gainers on the earnings side today were shares of DR Horton (DHI), GNC Holdings (GNC), and AbbVie (ABBV). On the flipside, we had a decent amount of investor selling in stocks like KLA Tencor (KLAC), Expedia (EXPE), Covidien (COV), and V.F. Corp (VFC).
Everyday investors have a constant stream of thoughts as to what to do with their money in today’s current low interest rate environment. Do you chase the latest buzz stocks and risk being left at the party by yourself when the euphoria shifts on a dime? Do you continue to stay the course on putting money to work in assets that produce income, such as dividend stocks — or perhaps positive cash-flow real estate properties? The profits there are slower but fairly consistent. However the recent run-up we have been seeing has made the pickings a bit leaner if certain income yield levels are on one’s wish list. There is also the option of sitting on an ever-growing stockpile of cash for those who have been smart to save and avoid the debt game. Sitting can make one like a genius at times, especially if markets sell-off unexpectedly.
The one thing I can say is while you are contemplating your personal decision is to make sure you are doing whatever you can to bring in a steady source of funds through your career or your business. If you are retired, hopefully you are able to utilize a pension source for that stream of income you will need to live on. At Dividend.com, we have always pushed back on timing the markets, but at the same time, we want investors to do what they feel most comfortable with and where stress is at a minimum. If you do decide to raise cash, don’t be afraid to use it when pullbacks do come. Investors can sometimes get too complacent in when they decide to get back in and with that they are vulnerable to miss some of the better rallies.Looking Toward Next Week
Looking ahead to the next week for stocks, earnings releases for the second quarter continue to kick into high gear. Some of the companies reporting next week include Allstate (ALL), Merck (MRK), Clorox (CLX), Kraft Foods (KRFT), and Kellogg (K).