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Thoughts on the Non-Taper Taper?
#1
So any initial reactions to the Fed's decision to ever-so-slightly begin to taper its asset-buying (from $85 billion per month to $75 billion per month)? They also indicated much more affirmatively that interest rates are very likely going to stay really low for a fair while longer.

I'd think that together, these would be very bullish signals for the market. But except for yesterday's moderate pop, the reaction seems to be ho-hum.
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#2
The market is already toppy according to historical standards. Is it reasonable to expect some dramatic acceleration in corporate earnings in 2014. I think not, and absent strong earnings, what will be the driver, other than continued kool aid from the Fed.
Alex
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#3
There are undervalued stocks there. For dividend growth investors it is not a stock market, it is a market of stocks.

There are almost always good buys out there.
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#4
What is your short list of 'under valued' stocks? I fail to see any. Most all conservative DG types of stocks are sporting p/e's of 18-20 or higher and anything with a lower p/e, for the most part, is discounted for good reasons.
Alex
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#5
(12-19-2013, 09:43 PM)hendi_alex Wrote: What is your short list of 'under valued' stocks? I fail to see any. Most all conservative DG types of stocks are sporting p/e's of 18-20 or higher and anything with a lower p/e, for the most part, is discounted for good reasons.

RCI, DE, AAPL, CVX, SE, UL, HCN, KMI, O, SO, MCD, PM [edited to remove GE from list - it is at fair value now]

All of these are undervalued when compared to Morningstar's fair value estimate. Most of them are at least 8% below that estimate. I own 9 of them.

I did not look them up on FAST Graphs, a tool I recently subscribed to that shows a lot of promise. I also subscribe to Morningstar's DividendInvestor newsletter. These are the only two paid subscriptions I have to help me with investing. In my view, they are both well worth the money.
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#6
Baxter is another dividend name that is undervalued

Article by Dividend Mantra

Morningstar has a fair value of $80.
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#7
Man, this is a large and overheated topic.

Overall, I think it's a good thing and I think the Fed is going about it in a calculated, logical manner. I think the greatest danger the economy faced was radical changes in any monetary policy.

I was tempted to add a lot more but, after reviewing my position which covered points going back over 100 years, I think I'll stop here and see what, if anything, others add.

As for the undervalued stocks, I think Helmerich & Payne (HP) is at the bottom range of fairly valued if not a little undervalued right now. Just added some to my portfolio this past week. The last dividend boost added to my opinion.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan


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