“Do Not Be Afraid”, John Paul II.
Savvy analyst on CNBC noted back in December that Tax strategists were advising their clients to NOT sell and take profits before the end of 2012, but rather......to wait until after the turn of the year and take profits in 2013. That’s what they’re doing..........taking profits off the table.
Then, they’ll buy back in to different sectors; its profit taking followed by sector rotation.
There’s a cool way to play this. Each sell-off day, check to find the stocks that didn’t dive, or actually went up! Then check that list with a list of companies reporting higher earnings. Finally, compare the list that’s left to stocks trading at a forward PE multiple less than 16X and which pay a dividend in excess of 1.5% Those are the companies the big boys will be or are, rotating into.
Microsoft is up nicely today, and it also pays a 3% dividend.
“There’s a cool way to play this. Each sell-off day, check to find the stocks that didn’t dive, or actually went up! Then check that list with a list of companies reporting higher earnings. Finally, compare the list that’s left to stocks trading at a forward PE multiple less than 16X and which pay a dividend in excess of 1.5% Those are the companies the big boys will be or are, rotating into.”
Sweet thinking on the above! I have a diverse portfolio. Hard to rotate out of some sectors.