NEW LOW OBSERVER

We start by looking back at last year’s list which contain only limited amount of companies because of an explosive move from March low. It should not surprise anyone that value oriented strategy such as low P/E and low P/B out performed. These strategies tend to outperform at market bottom.

Best performing stock was State Auto Financial Corp (STFC) which rose 77% driven by acquisition by Liberty Mutual. On the opposite end of the spectrum is AT&T (T) which lost 5%. Chasing high yield proved to be less desirable strategy.

U.S. Dividend Watch List: October 8, 2021

It was a positive week for the market but a pattern of lower high and lower low could be on the horizon if the S&P 500 can’t break 4,450. We are seeing more companies on our watch list which could also signal a weakness in the internal market. A careful consideration of long-term investment from this list would be a good starting point. Continue reading →

Overall, the market appears to be cooling off a bit and we are seeing both the Dow and S&P 500 failing to make all-time high. The Dow is off the peak by 3% while the S&P 500 is off by 2.35%. One should not take this as a sign that a market will crash and a healthy bull market require pull back on a periodic basis. Recent pull back in the market pushed the number of companies on our watch list to 74. Continue reading →