By Mitchell Clark, B.Comm. | October 13, 2014
On the day that the DOW, S&P 500, and NASDAQ Composite dropped two percent on global growth worries, once again, several companies reported very good numbers.
But investors are paying less attention to corporate results and more attention to economic news from around the world that suggests that the only mature economic engine running at any positive speed currently is the U.S. economy.
PepsiCo, Inc. (PEP) had another good quarter. … Read More
By Mitchell Clark, B.Comm. | September 29, 2014
A lot of good companies with solid investment prospects going into 2015 are pushing new highs in an otherwise trendless stock market before the end of another reporting period.
Market leaders have kept their momentum the last few years and are likely to keep doing so as earnings reliability and dividends keep investors buying.
Microsoft Corporation (MSFT) continues to tick higher in this market. The position was $35.00 a share … Read More
By Mitchell Clark, B.Comm. | August 8, 2014
The monetary environment is still highly favorable to stocks and should continue to be so well into 2015. However, while this market can handle higher interest rates, stocks can only advance in a higher interest rate environment if gross domestic product (GDP) growth is there to back it up.
Because of the capital gains over the last few years and the across-the-board record-highs in many indices, investment risk in stocks … Read More
By Mitchell Clark, B.Comm. | July 14, 2014
As a strong believer in the wealth-creating effects of large-cap, dividend paying stocks, I’m also an advocate of dividend reinvestment, which is the purchasing of a company’s shares using the cash dividends paid.
This can be done commission-free from your broker and/or through the company itself if it offers such a program.
Dividend reinvestment is a powerful wealth creator if you do not require the income paid out by a … Read More
By George Leong, B.Comm. | June 13, 2014
My dad is earning a few percentage points on his fixed-income yields. Fortunately for him, that’s sufficient to live on when combined with his monthly pension and savings. He has no mortgage and lives a pretty normal, but somewhat frugal life.
In fact, Dad has always favored the fixed-income market for his investments as he doesn’t like risk. But for many Americans, the need for an ample flow of income … Read More
By George Leong, B.Comm. | May 30, 2014
After some bouts of selling in May, the stock market appears to be edging higher again as we are at the end of the trading month today.
As I said in January, it will not be easy to make money this year, given the cuts in easy money flowing into the capital markets. The S&P 500 is leading the pack with a 3.46% gain as of Tuesday. If you annualized … Read More
By Mitchell Clark, B.Comm. | May 21, 2014
The thing about large-cap investing—and most stock market investing, in general—is that periods of capital gains are often met with long periods of non-performance.
A great investment with a long history of making money for stockholders is Johnson & Johnson (JNJ). But even this blue chip pharmaceutical/consumer products company has experienced long periods with nearly no capital gains (1975 to 1985 and 2002 to 2012, in recent history).
Action in … Read More
By Mitchell Clark, B.Comm. | May 14, 2014
In my mind, portfolio safety and consistency of equity market returns are paramount. This is a basic portfolio management principle, and I like to see consistent earners as core positions in any equity market portfolio.
This doesn’t mean there isn’t room for more speculative stocks, but investing is different than risk-capital speculating.
Consistent earnings growers and dividend paying stocks should be the foundation of an equity market portfolio geared for … Read More
By Mitchell Clark, B.Comm. | May 8, 2014
The stock market is getting soft quickly, but it’s to be expected. Even days when the main indices open positive, action turns down regularly; it’s a sign of things to come.
I wouldn’t be surprised if stocks stay soft until the fourth quarter. In an environment of mixed economic data and modest corporate earnings, that’s just something for which investors should be prepared.
Plenty of companies reported a solid first … Read More
By Mitchell Clark, B.Comm. | April 30, 2014
It’s just the same old story with stocks. One day they’re up; the next day they’re not.
If 2013 was a breakout year from the previous long-run recovery cycle, 2014 is a year of choppiness.
Stocks just can’t seem to latch onto any particular trend. A convolution of influences from earnings results to geopolitical events continue to beat down what positive sentiment sprouts from the data.
It’s no surprise to … Read More