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Interesting statistic for WHY "richer" people are richer.... Certainly makes perfect sense to me...

If you RENT a place - you have ZERO upside. If you OWN a home... you are far better off than the Renter... If you OWN a business or have some money to actually INVEST... you're better off than just the guy that owns a home as his only asset. DOH!!

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In 2003, the wealthiest 5% of Americans had a net worth 13 times that of the median household. By 2013, that disparity had nearly doubled, with these households holding 24 times that of the median.

The main reason for this increasing wealth gap: not only do the rich have more assets, but they have more of the assets that have performed better. More than half of a typical household’s wealth is in real estate. But a median household in the top 5% keeps only 16% of wealth in home equity. More of their assets are in businesses (49%) and financial investments like stocks and bonds (25%). So these households have gained far more from the recent equity bull market.

Think you can time the market?

Quote:

Originally Posted by Vegas69 (Post 598731)

Think you can time the market?

Great chart Todd, thanks! Reality check...can't avoid the worst days without missing the best.

I have to admit, it's been very tempting to scale back my portfolio. The negative news and indicators seem to be creeping in, and I've been reading more wolfstreet.com which sees Oil as the trigger for the next collapse. But I suppose I'll just sit tight and ride it out.

Hmmm... and I've been wondering about putting more in....

Absolutely fantastic chart Todd! Thanks for posting it!!

It's HARD to hold when the market is going "south" -- thus my strategy of at least getting some income from the dividends and my "pays you to wait" statements. But if you sell -- and you won't sell until you're getting killed -- then you won't buy until the market is back up 50%... and that's why they (the pros) advise you to not try to "time" the market. It just doesn't work!

You miss 10 days in 20 years and you have HALF. :RunninDog:

Greg,

I have read most of the thread and at one point back around 2013 you mentioned several stocks:
Consolidated Edison Inc. (ED)
iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
Johnson & Johnson (JNJ)
SPDR Barclays Capital High Yield Bond ETF (JNK)
Kimberly-Clark Corporation (KMB)
The Coca-Cola Company (KO)
McDonald's Corporation (MCD)
Altria Group, Inc. (MO)
Annaly Capital Management, Inc. (NLY)
PepsiCo Inc. (PEP)
The Procter & Gamble Company (PG)
Philip Morris International Inc. (PM)

saying that you felt that these stocks were worth investigating. Now that it is several years later how do you feel about the stocks? A lot has changed within the market with energy stocks. I was just curious of your input. Thanks again for taking the time to add your thought and advise to this thread.

Quote:

Originally Posted by GEN_X (Post 599300)

Greg,

I have read most of the thread and at one point back around 2013 you mentioned several stocks:
Consolidated Edison Inc. (ED) --- Still a core holding - it's a "utility" stock - people have to buy and pay for - power.

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) -- I'll do two with one stone HYG and JNK -- are "yield" plays - that ARE INTEREST RATE SENSITIVE!! So I'm in and out of these two names all the time - I consider them as places to "PARK" cash - since they pay MONTHLY dividends. I also use PFF for this same type of holding. These are not buy and forget names - they are used for their correct purposes.

Johnson & Johnson (JNJ) -- I don't personally hold this and haven't for many years --- but this is a great name and can be part of anyones holdings.

SPDR Barclays Capital High Yield Bond ETF (JNK) - SEE HYG

Kimberly-Clark Corporation (KMB) -- this is the same response as JNJ

The Coca-Cola Company (KO) -- Same response as JNJ and KMB -- long term great name with growth and safety and dividend... and comfortable to own.

McDonald's Corporation (MCD) -- I think there is a fundamental change in the wind with this STYLE of food.... and warned a long time ago that I was selling my holdings and moving on. I'd far prefer to own Chipotle Mexican Grill (CMG). I don't want my money in a business that struggles to make sales numbers.

Altria Group, Inc. (MO) -- A core holding of mine - booze and smokes -- sin stocks! People with drink and smoke til they're dead - and I'll take the dividend and go on vacation. Thank you drinkers and smokers.

Annaly Capital Management, Inc. (NLY) -- Warned about selling this name long ago -- it's paid a big dividend -- but this name is super interest rate sensitive and gets killed in a rising rate market.

PepsiCo Inc. (PEP) -- This and names like Coke and AT&T and Verizon - etc - these are sleep well long term buy and holds.... not saying to load the boat with them - if you read the thread -- I'll say to make core investments in these kinds of names and offset them when you can with some more risk ONCE YOU OWN THE CORES in the proper amounts!

The Procter & Gamble Company (PG) -- Lump this with Coke - JNJ - KMB - PEP etc -- there's others in this category and you need to do your homework on all of these kinds of names to find the right amount/balance of Total Return - dividends - etc but don't load up on all "CONSUMER" names... even though these have been good for years.

Philip Morris International Inc. (PM) -- Like MO above. And like I said in the P&G response -- just do your homework and then choose which of these sin stocks fits your personal portfolio.

saying that you felt that these stocks were worth investigating. Now that it is several years later how do you feel about the stocks? A lot has changed within the market with energy stocks. I was just curious of your input. Thanks again for taking the time to add your thought and advise to this thread.

Good question! I'll do my response in blue above.

A stock I used to own - Terra Nitrogen (TNH) - is THE PERFECT example of the relationship of DIVIDEND to PRICE action. I'd like you all to go to GOOGLE FINANCE -- open up a chart of TNH - stretch it out to the FIVE YEAR (so you can see the dollar amount of dividend paid)..... This should be an eye opener.

Note that as they INCREASED the div - the price went accordingly - but look what happens when they start to cut it!!

What's my point? Be very careful when "chasing yield"!! There's a reason that the yield percentage is so "tantalizingly high"... that comes with RISK! Risk is okay when it works out in your favor. Painful when it doesn't!! And you can only buy RISK assets when you're very actively managing them. They're not buy and holders / sleep well at night investments. Learn the difference.