Friday, April 5, 2013

Let the correction begin!

It started with increased volatility and as per history the next move is down. I sold some SLV and FCX puts in the last few weeks as a hedge. Do you remember the days when the market was down big and the only risers were precious metals and metal stocks? I do.

Hopefully long term dividend growth investors have some cash at the ready as bargains will soon be available again.I am going to be looking very closely at present yields compared to historical yields. My long term investments have done the best when I buy dividend growers when their yield is above historical norms. For example I bought Lowe's when the yield was nearly 3% and Wal-Mart when the yield exceeded 3%. Both of these now have higher yield on cost along with significant capital appreciation.

Let the games begin!


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