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Strategies & Market Trends : Young and Older Folk Portfolio

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To: chowder who wrote (235)7/27/2021 11:17:21 AM
From: Halfdave1 Recommendation

Recommended By
Graustus

   of 22023
 
I echo that sentiment, as an investor one has to know which types of business are cyclical or not. Nearly all the banks during the GFC cut their dividend drastically a lot went to zero. However, I made my small fortune by buying their bonds at 80 cents on the dollar plus their preferred stocks at 40 cents on the dollar. It was a risky but correct move. That is why I am constantly questioning the idea of looking just at dividends as a first screen. As an investor one has to know the nature of the business, its up and downs it's regulatory risks, etc.
Not an easy game, though Chowder makes it look easy. :)

The next area of concern for me is drug stocks and how governments want to keep drug prices down but don't address the real issue of doctor and hospital pay.

An area I got really burned was oil stocks, MLP, etc. They paid great dividends but they all cut theirs drastically too. So again, knowing the cyclical nature is key.
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