3 Dividend Stock Ideas for Christmas

The market tanked a little the first part of November with the S&P 500 (SPY) giving up around 3%. Then, it chugged sideways through Thanksgiving, breaking out and climbing over 5%. Even more so, the SPX is up nearly 20% from the July lows and over 10% YTD. Correct me if I’m wrong but that’s a good year. Some of the baseline economic data, inventories, a shrinking trade deficit, looks a lot better than it did two years ago. That’s the good Santa. Here’s the bad Santa.It appears that the first couple of pieces of the Jenga game that is also known as “the government bond market” have been pulled out. In mid-October, ten year yields were as low as 2.50. Now they’re at around 3.30. That’s a 32% move. It may be good for stocks as the glut of money rotates out of fixed income and into equities. But how will small investors react when they see the value of the gazillions of dollars they’ve been shoveling into bond funds go down? Probably the same way most 9 month olds react the first time they meet a mall Santa. It’s a safe bet that they won’t flee into the safe arms of equities. Yes. MORE cash. That’s not going to help keep this thing going. Bah humbug.... Read more