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The week that was

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Whew! Last week was something, wasn’t it? Stocks in free fall and panic in the streets. According to Barron‘s Monday edition (“Attention Shoppers: It’s Time to Buy,” by Andrew Bary), this is the fourth such decline in a bull market since WWII ended. The other three rallied an average of 18% in the next quarter (from Barron‘s lips to God’s ear, right?).

I did find on Thursday, during the precipitous drop, that quality stocks did not fall nearly as much as lesser names. Friday brought some relief and an uptick so that we could have tolerable weekends.

It seems clear that we are going to have volatility in our future. Even so, there seem to be a number of awfully attractive buys out there, and some pay good and growing dividends. It’s pretty hard to find a market bottom, but how bad is a 4.5% dividend and a growing company? In the Bary article, he points out that PFE (Pfizer) and MRK (Merck) are yielding more than 4.5%. PFE was one of the stocks I looked at on Thursday — its percentage decline was less than the general fall from grace.

Have a wonderful next week and try not to let the market or the media get you down. This blog was written Sunday, and who knows what will happen by the time it’s published Wednesday? Only The Shadow knows, right?

For more on market declines, see:

A closer look at “bucket planning” strategies

When Conservative Can Be Cool: Trends in Annuity Sales

10 ways to prepare for retirement

For more blogs from Richard Hoe, click here.

Readers may write to Richard Hoe at Richard Hoe Investments, LLC, 5801 East 41st Street, Suite 715, Tulsa, OK 74135-5629, or email him at [email protected]. Mr. Hoe, an investment professional for 42 years, is a member of Prosperity Network’s five-person investment team, as well as an investment advisor representative and registered representative. Paul Ewing’s Kansas City-based Prosperity Advisory Group has over $2 billion in AUM. Mr. Hoe has been writing professionally for more than 50 years and is a member of the adjunct faculty at the California Institute of Finance, a graduate school at California Lutheran University that offers an M.B.A. in financial planning. He holds five designations, including Chartered Financial Consultant, Chartered Life Underwriter and Accredited Estate Planner, and is a member of both the Society of Financial Service Professionals and the Financial Planning Association. He helps edit each edition of Andy Kilpatrick’s “Of Permanent Value,” a book about Warren Buffett and Berkshire Hathaway published yearly in advance of each shareholder meeting.

This information is intended for financial professionals only, not the general public. This is not a solicitation to buy or sell any specific security. Mr. Hoe may have positions in the securities or other investments discussed. Investments in securities do not offer a fixed rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions, and when sold or redeemed, one may receive more or less than originally invested.

Evaluation copies of software and review copies of books are sometimes furnished by publishers without charge; however Mr. Hoe only reviews books and programs he feels will of value to LIS readers and avoids writing reviews he feels would be of little interest to financial professionals.