Weekly Market Summary: Lower Rates Highlight Value of Dividends

Our Archive

Search completed

A three-day holiday may be just what the U.S. stock market needs. Investors turned more defensive in the last week of trading before Summer kicks off on Monday with the Memorial Day holiday.

Traders bought bonds this week, pushing rates lower, while selling stocks. The trade war between China and the U.S. heated up again and investors were spooked by reports of slower growth in Europe. UK Prime Minister Theresa May also said on Friday that she will step down in June, after failing to execute a Brexit strategy in the past three years.

Elsewhere, crude oil posted its worst one-day performance for 2019 on Thursday, though remains 25% higher year-to-date.… Read more

Read More

U.S. stocks posted modest gains this week, which was shortened by the Good Friday holiday. The first full week of earnings season saw largely positive reports, especially from the banks, given the fact that aggregate profits are expected to decline 3% to 4% in the first quarter.

The earnings decline in the face of robust gains to begin 2019 was enough to send strategists at Jefferies to the sidelines this week. On Monday, the firm lowered its rating on U.S. Equities to Modestly Bearish, in the context of their global asset allocation.

However, overall investor sentiment remains high in this country.… Read more

Read More

If the virtues and importance of dividend growth weren’t etched into your brain already, let’s consider February’s example. (Then we’ll outline ten imminent hikes coming in April.)

About a month ago, shortly before the market reached full correction mode, I outlined the problem low-growth dividend stocks would have against rapidly rising Treasury rates – and why it’s vital that we monitor the dividend growth of current and prospective holdings.

Within a week, yields quickly leapt to nearly 3%, and currently sit close by at about 2.9%. On cue stocks crashed:

The lesson here is twofold.

For one, if interest rates continue to climb, life becomes more difficult for corporations across the board.…
Read more

Read More

About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

Sign up for our Newsletter

Categories

Vincent Taylor Jersey