Market Wrap-Up for Jan.21 (GE, COF, STI, FCX, BTU, MCD, JNJ, more)

We sometimes hear from dividend investors who simply over-analyze their investments. For instance, dividend stock prices are automatically negatively adjusted on the ex-dividend date to reflect the upcoming payout. This practice, put into place by the exchanges themselves, prevents people from “gaming” the dividend system. Investors sometimes panic at these price drops, despite them being a natural part of dividend investing. A one- or two-point drop in a high-quality dividend stock, especially as a result of an ex-dividend adjustment, is nothing to be concerned about! Now if the stocks gets down 20-25% off its 52-week high, then and only then you may have something to worry yourself with. This illustrates the danger of focusing on the short term, which usually causes investors to start trying to time the markets. Trying to time every movement perfectly is trading, not investing, so forget about looking for immediate price gains as soon as you purchase a security! Before we look at today’s market action, just a quick note to check out today’s new recommendation changes in the link below if you did not read the e-mail alert we sent out earlier. The market got off to a decent start on the back of solid earnings results from General Electric ( GE ). We also saw positive reactions to financial plays SunTrust Banks ( STI ), Capital One Financial ( COF ), and BB&T Corp ( BBT ). Wall Street analyst upgrades also helped lift shares of Eaton Corp ( ETN ) and Parker-Hannifin ( PH ). Sellers hit commodity plays once again, with Freeport McMoran ( FCX ), Walter Energy ( WLT ), and Peabody Energy ( BTU ) taking a hit. I’m hearing from some gold and silver investors about the recent pain they have seen with the recent price drop. I don’t see any particular long-term worries at this point, but with signs of the economy getting its mojo back, the case for the metals may not be as seductive as it has been. Overall, it may be a good time to get some gold stock candidates ready to examine on healthy pullbacks. I have been consistently saying here that the metals could be in for a pullback, and urged caution back in late November, so hopefully anyone that was sitting on nice profits was able to ring the register at higher levels. I still believe that this generation of investors is not afraid of looking at commodities for a part an investment portfolio, so I doubt that we will go back to long-term periods of gold and silver languishing. We finish up …

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Market Wrap-Up for Jan.21 (GE, COF, STI, FCX, BTU, MCD, JNJ, more)

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