By all means, follow Lynch’s advice by looking for emerging trends on your next trip to the mall (or next browse on Amazon). But don’t buy a company’s stock just because you like a particular product.
For one, payout hikes increase our yield on cost, which is more important from an income standpoint than the stock’s current yield.
There’s no magic solution for funding a retirement in a world of zero Fed interest rates. But we can at least have a few guidelines to hopefully avoid disaster.
Ross: “Buying during the uptrend was a lot of dumb money, running on the policy-makers-will-save-us mantra.”
It really is sounding a lot like 1999 again when day traders expected to make 1,000% a year. It’s also looking a lot like 2007 when stocks were beginning the worst bear market since the Great Depression.
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