Just when it looked like our Federal Reserve led by Chairman Ben Bernanke was going to keep this 4-year stock market rally humming, the U.S. Congress decides to play chicken with our economy. It would be easy to blame one side or the other depending on your perspective. The reality, however, is that Obamacare, keeping the government running with a Continuing Resolution, and dealing with the Debt Ceiling are three heads of a monster that could derail the fragile economic progress we have made in the last 4 years. It is hard to predict how long the political fight over each of these three critical issues will last and also what impact each issue will have on the stock market. Stock traders are already taking some profits and have driven the market down 2.3% with 5 straight days of negative results since it hit its all-time high last week .
For long-term investors, this volatility may be a blessing, because lower stock prices present good opportunities to add quality companies to our portfolios. Among the better companies, especially for income-oriented investors, are: (1) NextEra Energy, Inc. (NEE/3.25% yield), (2) Health Care REIT, Inc. (HCN/4.85% yield), and (3) Gabelli Dividend and Income Trust (GDV/5.36% yield). In addition to paying excellent yields (dividends), these investments have also performed well with prices of their stocks rising due to improving operating results. We will be sharing more detailed information on these and other attractive investment choices in future blogs. When you subscribe you will be the first to know when we post these blogs. You can subscribe using the green box on our home page.
Have a great week, and I hope to see you at the “Celebrate the Arts Festival” in Vero Beach, FL (click here for more information).
Midweek Stock Market Report – September 25, 2013