Why would I buy a 30 year bond with a 3% coupon and NO chance of capital appreciation?? 30 years ago, VZ was selling for about $2 p/s (spilt-adjusted). I'll take a 4% div and a 25-fold increase in share price any day.
Like the rest of the "experts", Kramer is a snake oil salesman. After all of his screw-ups, I can not believe anyone listens. You do know that he's a physicist. That's right. Throw enough BS at a wall and some is bound to stick
yeah , he also said that he dumped BMY ... okay , he's not in the same league as retail investors ... he's taking
the sign from the FED that rates will be rising , though maybe not for another year , he's going to load up on
the stocks that he believes will perform best in the next cycle .. it doesn't mean that VZ , BMY and the rest
are dead , but share price appreciation will temper for a while ... as long as VZ , BMY and rest continue to
boost divs , they will be excellent stocks to own ... garce
BTW .. under his breath , this morning , ol' JC mentioned that he dumped Merck out of his charitable trust , but
that is wasn't a good sell .... have to wonder why he preaches about NOT buying or selling one's whole position
at once , then "dumps" all of his Merck ? mabe from the Charity trust , but i have to believe he owns a bunch
of it in some other portfolio ....
NOTE .. recent thinking (from more than just Cramer) .. stalwart div stocks are dying because bonds yields are
rising .. " who would want to own a 3% stock when they can get that or more from a bond?" ... well the bond
rate is fixed , but the div stocks will most likely continue to increase payouts ...
also ... so what if the 10 yr is at 4% next year ???? the trend for bond yields to rise , when it starts , will
run for many years .....
LOOK at these cycles ... gold = 25 year decline , along with bond rates ... then gold has been on a 10 year
upswing ... when the bond price declines begin it will also be a lengthy cycle ... why buy a 3% 10 YEAR this
year or next , when you could get 5+% in another year or 2 (keep in mind the capital losses attendant with
holding a bond while rates are increasing
always look beyond the smoke and keep the mirrors clean .... g