The stock market is driven by greed and fear. And when the latter takes full control of the wheel, as is the case right now, value-minded income investors need to stay sharp.
It’s been more than a decade since we’ve gotten a true bear market, which tends to bring stock valuations more in line with historical norms. Even so, since 2009, we’ve experienced a few quick drawdowns that resulted in more reasonable prices, and more generous yields, than this expensive market typically offers.
There was the August 2014 correction triggered by China’s “Black Monday.” There was our near-bear experience in 2018, prompted by tariff fears, Fed rate hikes and the partial government shutdown.… Read more
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