This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dow 55,000? It's Closer Than You Think

The dividend yield of the S&P 500, for instance, is higher post-2008 than it's been since 1991.

>>5 Stocks Ready for a Dividend Boost in 2012

Since the market crash of 2008, stock prices have been pushing higher, but earnings have been moving even faster over that same period. Ultimately, that means that there are still some bargains to be had for investors willing to search them out.

An Action to Take for Dow 55,000

The big question you're probably wondering by now is: When, already?

In the past examples of "death of equities rallies," the returns were slow going, measured in decades rather than months or years. But this month marks the four-year mark since the floor fell out of the stock market in October 2008. We're entering the territory where some of the biggest gains have historically been made.

For that to happen, a good earnings season this quarter is only part of the battle. The other part is getting investors to think in terms of return on capital again, instead of return of capital. For that, it's just a matter of time.

Right now, investors are overweight in flight to quality investments like treasuries. But those investments are atrophying away under the low-rate, higher interest rate environment that we're currently knee-deep in. It doesn't take hyperinflation to create a toxic environment for low-risk assets, and the current conditions prove it.

>>5 Blue-Chip Stocks to Buy to Beat the S&P

Stocks may not be perfect, but when treasury investors can't take the pain anymore, they're going to have to turn to stocks again. When that happens, the flow of funds will send the stock rally moving in earnest.

As contrarian investors know, though, those "risk-off" investors will necessarily miss out on the lion's share of the gains. So how can you make sure you get in early? Focusing your portfolio on a few places now, while stocks are still out of favor, helps.

The old adage goes that everyone looks like a genius during a bull market. That means that index ETFs such as the SPDR S&P 500 ETF (SPY) and the PowerShares QQQ Trust (QQQ) do really well in this scenario. But get a little more selective, and you'll boost that investment IQ. Here are two of areas to focus on.
3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
MA $97.18 0.00%
SPY $207.45 0.00%
T $38.64 0.00%
AAPL $95.03 0.21%
FB $116.73 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs