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Too Cheap To Ignore: Dividend Equities For The Long Haul
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Published Tue, 12 Jun 2012 11:54:17 -0400 on Seeking Alpha
As investors rush into government debt driving yields to record lows, they have shunned strong long-term investment opportunities. I believe there is a bubble in liquidity. Investors want securities that they can liquidate at the push of a button in a deflationary market. Investors are shunning long-term investments from houses to dividend paying equities in favor or cash and long-term bonds. The market sell-off has been swift and strong since peaking in April. From a short-term perspective, the market is trending near its 200 day moving average, which could put continued pressure on prices. From a medium-term perspective, I believe that the economy and world markets will continue to be hamstrung by significant debt loads that took decades to build. While markets remain relatively inexpensive, there are significant headwinds that will temper enthusiasm. The de-leveraging process that started in 2008 is proving to be long and painful. Central bankers all... Read more


