Some of the hardest hit stocks during this selloff have been those with
strong yields as higher interest rates have made their dividends
comparatively less attractive.
But is this selloff in dividend stocks overdone?
The Fed Giveth, the Fed Taketh Away
A common misperception is that over the last couple of years,
yield-starved investors bid up all dividend stocks to untenable
valuations and that this recent selloff is just a normal correction for
these overbought securities.
That may be the case for some dividend stocks - but not all.
In fact, one of the hardest hit groups has been real estate investment
trusts (REITs). But there are many REITs with strong fundamentals there
were trading at very reasonable prices before the recent "dividend off"
trade. (more)
Mediobanca,
Italy’s second biggest bank, said its “index of solvency risk” for
Italy was already flashing warning signs as the worldwide bond rout
continued into a second week, pushing up borrowing costs.
IMAX has been holding a very important level of support at $25 (blue)
since the middle of February. No matter what the market has or has not
done over that period of time, IMAX has held that $25 level, which was
also a brief resistance in January. The stock approaching $25 again
should provide another bounce higher, but if the overall market
continues to sell-off, IMAX could break that support.
Goodbye housing (non)recovery… except for those private
equity-cum-landlord firms and offshore oligarchs who pay all cash of
course. “The 30-year fixed mortgage rate on Zillow(R) Mortgage
Marketplace is currently 4.38 percent, up fifty basis points from 3.88
percent at this time last week. The 30-year fixed mortgage rate hovered
between 3.82 and 4 percent late last week, before spiking up near the
current rate over the weekend. This represents the highest rate on Zillow Mortgage Marketplace since July 2011.”