Investing Amid Quantitative Easing
Here are some, but clearly not all, dividend stocks that investors could consider to fill out the equities portion of a pre retirement, or near retirement portfolio rebalanced for quantitative easing.
This is not necessarily easy to do. It's important to note that investors should know their risk tolerance. This will provide you with a guide to determine what percentage of your money should be allocated to these investments.
Since TheStreet.com readers are generally independent-thinking investors, I say this reluctantly, but with conviction: If you cannot do this on your own, find a registered investment adviser who can help you execute. Nothing wrong using a fee-only adviser to put a plan together for you then coach you along the way.The underlying theme for retirees and near-retirees, especially for the equity portion of their portfolio, should be to invest in areas that have lots of hard assets, make necessary items, have some kind of monopolistic characteristic and pay above average current income. In short, the portfolio should mirror where retirees and near-retirees are spending their own money: energy, food, water and health care.
As a parting thought, the love affair between retired or near retired investors for Treasury securities is not completely over. Buy them all you want, but only for risk reduction, not current income. At the time of publication clients of the Cordasco Financial Network may have positions in some or all of the stocks mentioned. This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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