charts courtesy of www.realtimestockquote.com
Both the Daily and Weekly Dow charts show the market is poised to move higher. This keeps in line with our forecast for a continuation of the rally until next month. The traditional "sell in May, go away" seems to apply this year. Yes, there was some market volatility due to the geopolitical situation across the world. There is always a risk of volatility and should presently be used as a buying opportunity. The market is still awash in liquidity due to the Fed and Treasury continuing to print and borrow money to service the National Debt. The Fed will not be raising interest rates anytime soon because they do not want to squash the tepid growth which we are seeing in the economy. You can be sure they are continually monitoring their policy of buying and selling US Treasuries on the open market to coincide with this fact.
Here are some excellent dividend paying blue chip stocks which are available to investors who are willing to take some market risk. Remember the bank savings and treasury rates are paying less than 1% annually. The following stocks are paying over a 2% dividend and are more stable than most banks:
AT & T paying 5.4% with stock price of $34.30
CSCO paying 3.4% with stock price of $21.64
F paying 3.2% with stock price of $15.47
GE paying 3.4% with stock price of $25.40
The above information is for information purposes only. Any decision to buy, sell, or hold a specific investment for a specific portfolio should be reviewed with your investment advisor.
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