Why Dividend Paying Consumer Staples Are No Longer a Safe Haven

It feels like a perfect storm. A magnitude-9 earthquake and a tsunami devastate much of Japan. Thousands of people are killed or missing. Radiation poisons the air and the food supply. A core meltdown is still possible. The global supply chain for everything from technology products to the auto industry is disrupted. From Morocco on the shores of the Atlantic to the mountains of Iran, country after country struggles with regime change and civil war. The problems in Europe are different-- but no less dramatic. The financial crisis is alive and well, particularly in the countries bordering the Mediterranean Sea. Portugal, Spain, Italy and Greece are on the verge of financial collapse. Where does this leave us? The emerging markets have their own set of problems and, for the time being at least, not the best place to be invested. This leaves the U.S. market-- one that is hardly problem... Read more