The stock market has been due for a correction according to Mitchell Clark, contributor to popular financial e-newsletter Profit Confidential. Clark believes that a correction is well-deserved and says he would be accumulating dividend paying stocks on this pullback.
“If I were an equity investor looking for new positions this year, I’d wait until the correction plays itself out and I’d be watching my favorite dividend paying stocks for a good entry point,” says Clark.
In the recent Profit Confidential article, Stock Market Correction’s Here—Put Dividend Paying Stocks on Your Radar Screen, Clark makes the point that the S&P 500 Index is vulnerable now to the 1,300 level.
“If it gets there, this would be a meaningful correction and a good buying opportunity for higher dividend paying, large-cap companies,” says Clark.
Clark believes the stock market will be more apt to reward income over growth. “Large-cap, dividend paying stocks have been leading the stock market since last October,” says Clark. The editor thinks this trend will continue right into 2013.
Clark doesn’t see any reason why the U.S. stock market can’t reaccelerate this year, especially as we are likely to see sporadic improvement in the economic news.
While the outlook for corporate earnings isn’t robust, Clark believes it’s still solid and stock market valuations are reasonable. “Investment risk remains high for all equities, but it’s been like this since the financial crisis,” says Clark.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market…before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.