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Hi Clive, Re: High Yielders...................

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U.S. Stocks Close Higher For 2nd Day, Show Gain On Week
the so-called "fear index"--as measured by the CBOE Volatility Index fell 12% to 26.58.

A larger-than-expected upward revision to U.S. gross domestic product data, showing that U.S. economy grew at a faster 3.7% in the second quarter (http://www.marketwatch.com/story/us-economy-looks-much-stronger-after-upward-revision-to-gdp-report-2015-08-27), helped lift the spirits of investors that have been unsettled by a spate of volatility. Weekly data on jobless claims (http://www.marketwatch.com/story/us-jobless-claims-fall-6000-to-271000-2015-08-27-8913022), which pointed to continued strength in the labor market, added to the optimism.

"Today's revision means the U.S. economy is growing faster and [the] consumer spending portion points to a stronger growth in the second half of the year. With this kind of growth, we expect $135 earnings per share by the end of 2016," said Phil Orlando, chief equity strategist and senior portfolio manager at Federated Investors.

That translates to a 35% rise in the S&P 500 from its current level by the end of 2016, according to Orlando.

Global equity markets rallied following a 5.3% surge in the Shanghai Composite overnight, snapping a losing streak that wiped out nearly a quarter of its value in a week. That jump cheered investors world-wide, as fears about China have been blamed for much of the recent intense selling around the globe.

See: U.S. investors shouldn't fear China's slowdown (http://www.marketwatch.com/story/us-investors-shouldnt-fear-chinas-slowdown-2015-08-27).

Even so, some China watchers are questioning what drove the move and suggest the Chinese government intervened again. Read more: China's mystery rally (http://www.marketwatch.com/story/beijing-loch-ness-monster-eyed-in-mystery-of-china-rally-2015-08-27)

Investors had fled from stocks largely due to a lack of confidence in the Chinese government's handling of its financial markets, and the perception that the government was spending all its political capital on propping up the stock market rather than investing in its domestic economy, said John Canally, chief economic strategist for LPL Financial.

"They're clumsy and not used to reacting to markets," Canally said. "They're new to this."

The rally in U.S. stocks implies that investors are treating the recent actions out of China much like they did the 1998 Asian markets crisis, when U.S. stocks sold off initially, then bounced back, Canally said.

On Wednesday, the S&P 500 jumped 3.9% as the Dow surged 619 points (http://www.marketwatch.com/story/us-stocks-on-track-to-rise-as-china-tries-fresh-stimulus-2015-08-26). The benchmark S&P stands 8.9% off its May record close, after finishing down 12.4% from that level on Tuesday.

Other markets:Asian markets rebounded (http://www.marketwatch.com/story/asian-markets-rebound-boosted-by-central-banks-us-data-2015-08-27), while European stocks also traded higher (http://www.marketwatch.com/story/european-stocks-bounce-up-tracking-rallies-in-asia-us-2015-08-27).

Crude oil (http://www.marketwatch.com/story/oil-rebounds-by-over-2-as-stocks-recover-2015-08-27) settled 10% higher, while gold (http://www.marketwatch.com/story/gold-tilts-lower-eyes-4-day-losing-streak-2015-08-27) settled slightly lower. The dollar (http://www.marketwatch.com/story/dollar-steady-against-yen-as-risk-sentiment-improves-2015-08-27-11033527) strengthened by 0.7%.

.--Victor Reklaitis in London contributed to this article.

 

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(END) Dow Jones Newswires

August 27, 2015 16:24 ET (20:24 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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OldAIMGuy Member Level  Tuesday, 02/03/09 09:33:43 AM
Re: ls7550 post# 1111
Post # of 1175 
Hi Clive, Re: High Yielders...................

Well, these new ETFs are a long way from being "individual company stocks." These ETFs are formulated with an emphasis on dividends no matter where their location.

For instance, I switched from IJJ (Barra Mid Cap Value Index) with a yield around 5% to DON (Mid Cap Dividend Fund) with a yield of around 7%.

Industry Diversification As of 09/30/2008
          DON                          IJJ 

(From ETFConnect.com)

Both are diversified and therefore possibly less risky than selecting individual company stocks for their specific yield. There's been more than enough price movement in essentially all of these holdings for future return added from volatility capture. Most are, as the graphs show, well below their near term "sell" thresholds. That's a symptom of getting this new strategy started just as the markets started to unwind in late 2007. I never got as much of the one bond fund sold to properly fund the rest of the account and the cash reserve.

Going foreward, if AIM continues to generate "buy" signals, I'll use the dividends to accumulate more shares (not much more than "dollar cost averaging") in those segments that are furthest from their Portfolio Control values. Eventually all will be more reasonably balanced with regard to the original design targets of UBHS.

So, while not the same funds, there's a lot of "value" decision making that is included in selecting for "dividends" and there's a lot of dividends when selecting for value.

Also, this account is a retirement account and as such can't be tapped for a while yet (the tragedy of being too young!).

My current income from my work still pales compared to my investing. One could consider my vocation an avocation at this point. Business is good, however.

Best regards, Tom




Port Washington, WI 53074
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