High Dividends And The Bubble Of Cash On The Sidelines
Published Oct 21, 2020 on Seeking Alpha

Seeking AlphaDividend IdeasHigh Dividends And The Bubble Of Cash On The SidelinesOct. 21, 2020 8:35 AM ET|| Includes: DHS, DIA, DIV, DTD, DVY, EDIV, FDL, IVV, IWD, IWF, IWN, QQQ, REM, SCHD, SDIV, SDY, SP500, SPHD, SPY, TDIV, UTF, UTG, VNQ, VPUby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryThe current bull market is set to continue.
The presidential election results will not impact the upside trend.
The world is swimming today with excess liquidity.
Demand for high dividend stocks is set to increase.
U.S. and global equities remain resilient despite all the doom and gloom being painted by the media. This media keeps reminding people about the election risks, fiscal stimulus risks, the budget deficit risks, a second wave of COVID-19, and many others. Some investors may see that the "end of the world" is coming. However, for the smart investor, the best way to assess the stock markets is to have a close look at the state of the economy. Equities tend to reflect economic conditions. Stocks go up when the economy is doing well, and down when recession risks rise. In fact, reading accurately the state of the economy, and macro-economic analysis is more than 50% of the due diligence required to be a successful investor.
If you disregard all the negatives being spread by the media, signs of economic recovery continue to be very strong as seen from the latest economic data. And this is despite the lack of additional fiscal stimulus:
Retail sales increased by 1.9% in September crushing estimates of a 0.7% increase. Overall retail spending has improved enough to surpass pre-pandemic levels, and now is at all-time-highs! Compared to a year ago, September sales were up 5.4%. This is very impressive. This again shows how strong U.S. consumers currently are: The "V" shape recovery is not only complete for retail sales, but still growing. The main winners in this sector for the month of... Read more