Wednesday, November 26, 2008

must-read blog posts

Here are three posts that I really enjoyed over the past little while from three must-read blogs:

Why Don't We Buy Stocks When They're On Sale, by Dividend Money. This is not the first time the U.S. has looked like a very bleak place to be invested in the stock market.

Lotteries Millionaires, and a Sense of Scale About Money, by Michael James on Money. Whenever you are struck by a large sum of money, think about it in daily increments. Whether it is winning the lottery, being paid in dividends, or buying a ball glove for your son, you'll see it differently.

In Leveraged Investing & Prime Interest Rates, Million Dollar Journey provides an interesting chart on the Dividend Yield Required to Break Even with Leveraged Dividend Investing. I would add that this chart indicates the yield required on purchase to break even on returns from dividends alone given no dividend cuts, and a steady or dropping prime rate.

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Million Dollar Journey said...

Thanks for the mention MG!

Michael James said...

Thanks for the mention. I have an answer of sorts for Dividend Money about why we don't buy stocks when they are on sale: stocks are on sale because we're not buying them. This isn't a very satisfying answer because it immediately leads to the question why are we so pessimistic about stocks?