Yesterday the market faltered for the first time in several days. Is this the beginning of the pullback our expert contributors have been waiting for? Watch today’s Stock Market Crash Course to find out why this overheated market may need to take a breather, how long it could last and how you should react. Read More »
Chloe Lutts Jensen
In today’s Dividend Edition, I have three investment ideas that will hold particular appeal for anyone who’s ever had to make mortgage payments. That’s because these ideas are all ways for you to make money off others’ mortgages! We’ll start with the lowest-risk, lowest-yielding idea and work our way up.
My first idea is a mutual fund that is available at a big discount right now, giving it a yield of about 2.6%. Here’s the recommendation, from The Kelly Letter Editor Jason Kelly, via the Dividend Digest: Read More »
Richard Moroney, CFA
“Hertz Global Holdings, Inc. (HTZ NYSE) is in the fast lane. The rental company, with a fleet of nearly 760,000 cars, operates roughly 10,400 locations in about 150 countries. Hertz also rents equipment, while a separate unit offers fleet-management services. The car-rental industry has consolidated in recent years, leaving only three major U.S. players – Hertz, Avis Budget Group (CAR), and privately-held Enterprise. Hertz acquired Dollar Thrifty for $3.2 billion in November and purchased a 20% stake in China Auto Rental Holdings in April. Favorable pricing trends and Read More »
J. Royden Ward
“Prudential Financial, Inc. (PRU 66.60 NYSE – yield 2.40%), a financial services leader with approximately $1.06 trillion of assets under management as of December 31, 2012, has operations in the U.S., Asia, Europe and Latin America. Prudential offers investment management, group insurance and other financial services in the U.S., and life insurance overseas. Sales moved up sharply in 2012 as a result of acquisitions and two new major contracts for pension services. Acquisition costs, sluggish growth in the insurance business and higher claims in the disability business caused earnings per share to slip 5%. Prudential has exciting prospects for 2013. Higher Read More »
Chloe Lutts Jensen
“How much do you need to retire? (Or, if you are already retired, how much can you safely spend?) These are the most important financial questions that our clients face. Although each family’s situation may call for a different answer, there are some guidelines that will serve most investors well.
“In October 1994, William Bengen published an article in the Journal of Financial Planning in which he analyzed (using Ibbotson data) how much an investor with 50% in the S&P 500 and 50% in intermediate-term Treasury notes could safety withdraw without depleting his savings. He found that for all 30-year periods covered within the data available to him, an investor could withdraw 4% of principal initially and increase that amount with inflation without running out of money. Subsequent to the publication of his study, it turned out that investors who had started drawing on their retirement assets in the mid-1960s would have run out of money in less than 30 years after the ravages of the 1966-1982 period (when inflation outpaced stock and bond returns).
“The problem with the conclusions of that study is the doubt that stocks and bonds will match their long-term historical returns in the future. This is especially true in the case of bonds where the historical return of 5.4%/year total return in the Ibbotson series is mathematically improbable with interest rates as low as they are now.
Is A Market Correction Past Due?
“Not so long ago there were far more investors and traders discussing (and expecting) a market correction. The range in magnitude varied, but it was being discussed. As the market has continued to rally on to new all-times, there has been less and less discussion of a pullback. Those still expecting a pullback now have weakening economic data on their sides and a market valuation that no longer looks cheap with the S&P 500 currently trading with a 15 to 16 price-to-earnings multiple. The last argument frequently cited as a reason for a correction is the time the market has gone without one.
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Steven Check founded Check Capital Management (CCM) in 1987. As CCM's Chief Investment Officer, Mr. Check remains responsible for overall investment policy and portfolio...Read More
Larry and Rosanne Oakley are husband and wife partners of WallStreetCorner.com. Ms. Oakley was formerly the president of an investment research firm for 17 years. Mr. Oakley...Read More
Bert Dohmen is a professional investor with 38 years of experience in the markets. Mr. Dohmen is a trader, not just a writer, and his comments are original, thought provoking...Read More
David Gardner, a native of Washington, D.C., graduated as a Morehead Scholar from the University of North Carolina at Chapel Hill in 1988. With many ideas, no regrets, and...Read More
