Granted, the bull ride will end… and perhaps quite miserably. But until central banks begin tightening the screws, stocks probably have enough buyers to fight off short-sellers, bears and profit-takers. In other words, you may want to use the dips for opportunistic purchases.
Here are two ETFs that I will continue to purchase opportunistically:
1. Vanguard High Dividend Yield (VYM). In the second half of 2011, dividend investing became all the rage. In the first few months of 2012, however, investors appear to have abandoned slow-'n'-steady performers for greater capital appreciators. And yet, many reliable dividend payers — Abbott Labs (ABT), Altria (MO), Cintas (CTAS) — are still notching 52-week highs. If the geopolitical and economic risks have you on edge, Vanguard High Dividend Yield may be a safer ticket to ride.
2. EG Shares Low Volatility Emerging Market Dividend (HILO). There’s a lot to like about this emerger. In February, the pursuit of dividend yield and less volatile price movement prevailed. In fact, HILO outhustled its older cousin and materials-heavy Vanguard Emerging Markets (VWO). HILO tracks an index with a yield north of 6%, but doesn’t rely on riskier financial stocks in its higher-yielding efforts; rather, telecom, industrials and utilities lead the pack.
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