I'd like to make note of something that we've only touched on before -- and that's the INVERSE relationship of BOND YIELDS and STOCK PRICES....
Bond yields have risen quiet nicely (relatively) in the last couple weeks. When YIELDS on bonds go up -- they'll steal money from the stock market. People like a nice safe return...
I don't think anyone should REACT to this "news". I'm not going to. But I'm pointing it out that once you start hearing about this on the TALKING HEAD TV...
you can start to correlate the movement in stock prices.
If the yields go too high too fast -- they'll knock the legs out of the housing market... NOT GOOD.... and if they continue to rise... they'll knock the legs out of the stock market as well.
Remember that you'd still get your dividend... and that's what many are invested in... but a 4% stock dividend doesn't look as good when bond yields creep up to 3 or 3.5% etc. So then stock prices have to go DOWN to make the apparent yield go UP. A .35 dividend on a $10 stock is 3.5% -- but it's percentage goes up as the stock drops to $9 and higher still at $8.50
Just a "look, watch, and listen" reminder to the newbs out there. I want you all to learn from these events and to understand their correlation.
