Re: Money Markets and CD's

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date Re: Money Markets and CD's Douglas Johnson 02-02-2008  Re: Money Markets and CD's M.Balarama 02-03-2008
Posted by Douglas Johnson on February 2, 2008, 1:06 pm >My CD expires soon and I cannot reinvest at the present low rates...I will >check out stocks with high dividend rates and preferred stocks.. >It is a bit of a gamble-the stock may go down etc...but I have no choice at >present This worries me. Why do you have no choice? Chasing yield is usually a bad idea. Chasing yield out of desperation is almost always a bad idea. Unless you understand stocks pretty well, you are not likely to choose good ones (or know if the ones being recommended are good.) High yielding stocks are often distressed stocks with a good chance of going down in price and/or cutting dividends. You have to be able to read the company's financial statements and understand the company's business to know whether the dividend is secure. Be careful out there. -- Doug Posted by M.Balarama on February 3, 2008, 6:50 am > > >>My CD expires soon and I cannot reinvest at the present low rates...I will >>check out stocks with high dividend rates and preferred stocks.. >>It is a bit of a gamble-the stock may go down etc...but I have no choice >>at >>present > > This worries me. Why do you have no choice? Chasing yield is usually a > bad > idea. Chasing yield out of desperation is almost always a bad idea. > > Unless you understand stocks pretty well, you are not likely to choose > good ones > (or know if the ones being recommended are good.) High yielding stocks > are > often distressed stocks with a good chance of going down in price and/or > cutting > dividends. You have to be able to read the company's financial statements > and > understand the company's business to know whether the dividend is secure. > > Be careful out there. thanks-it is scary-Utilities with a track record is what I am getting > > -- Doug > Similar Threads Posted Re: Money Markets and CD's February 2, 2008, 6:18 am Re: Money Markets and CD's February 2, 2008, 1:00 pm Money Markets and the Current Financial Crisis July 15, 2008, 12:05 pm cd's & taxes October 17, 2006, 12:33 pm CD's maturing and taxes October 29, 2008, 3:55 pm International Emerging Markets Fund February 6, 2007, 4:57 am 403(b) Allocation/Emerging Markets question December 11, 2007, 2:29 pm how to protect retirement assets during bear markets April 16, 2007, 8:34 am Where to put money March 8, 2007, 12:54 pm Should I put my money in mortgage? December 28, 2006, 8:38 am