"Investors are chasing yield with little regard to risk. And ALL...

  1. 30,055 Posts.
    lightbulb Created with Sketch. 1758
    "Investors are chasing yield with little regard to risk. And ALL stocks are risk assets."

    Menta you missed my key point by overgeneralising.

    Not all stocks have the same risk profile and the way in which risk is being assessed shows a mania for dividends which means poor judgement. Fine by me though!

    Some stocks which are traditionally seen as higher risk (biotechs, mining explorers) are being ignored because they aren't yet generating income.

    This means the market is distorting into stocks which are overvalued because of their dividends. The banks are one. That doesn't mean the banks won't go down. Clearly they have and they will in the future which I why I have ignored them as too expensive. I'm a contra investor, OK?


    This creates an opportunity for well targetted investing into cheap undervalued speculative stocks with very high upside.

    Even the so-called blue chip stocks tanked during the GFC (and yields followed). That's a key point dolcevita.

    Sorry Menta but you're not telling me anything new there. Please rethink what I've written above. I don't disagree with you, but I have a different take on it.

    Either way I don't mind because the market doesn't always get it right. That's fine, I'm busy picking what I think are going to be dividend payers IN THE FUTURE.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.