From an investment standpoint, there's one major problem with this stock market. What's the problem? The problem is simply that it's not a good value. Great investment markets are characterized by being great values. The criterion of value is the return on the investment (the single exception to this rule is gold). The dividend yield on both the Dow and the S&P Composite is currently below 3%. Classically, it is well to remember that when the dividend yield on these two averages is in the 5-6% range, they are great values.
Because the return on the investment is now so low, investors have been forced to go to other asset classes. This has included junk bonds, option buying and selling, preferred stocks, diamonds, collectibles, commodities, agricultural lands, art, and a variety of unusual items such as comic books, jewelry, real estate, platinum and silver.
My own opinion of buying or trading in ... Log in or subscribe to continue reading.
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