Category Archives: Investing

Wells Fargo and Simon Property Stocks Cut Their Dividends

The market needs to brace itself for more dividend cuts. Investors need to tread carefully investing in retail REITs, banks, or energy. If you’re investing in the spaces, it’s likely that dividends aren’t your top priority. A multi-year turnaround plan sounds plausible.

Wells Fargo Cutting Its Dividend this Month

It’s expected that Wells Fargo (NYSE:WFC) will partially cut its dividend in Q3 to comply with the Federal Reserve’s stress tests. It will announce the new dividend when it reports quarterly results on July 14.

In the last great recession triggered by a financial crisis about 11 years ago, the stock traded as low as a P/E of 5 based on normalized earnings. That would imply a buy target of about $18 — if you’re looking for a multi-year turnaround play.

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Stock Market Crash: Wait or Buy Stocks Now?

The U.S. and Canadian stock markets made a lower high earlier this month. That’s a bearish indicator. Another stock market crash may just be around the corner. 

Source: Stockcharts with author annotation. Canadian stock market made a lower high in June 2020. The U.S. stock market’s chart is simila
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Stock Market Crash Coming: 2 Stock Investing Strategies

We believe the stock market has recovered too fast and that stock market crash 2.0 is coming.

COVID-19 is undoubtedly the biggest drag on the global economy. The pandemic has pushed up unemployment rates and pulled down GDP, as it swept through and destroyed multiple industries (think tourism, hospitality, brick-and-mortar retailers, retail real estate).

Some are optimistic about the situation, thinking that vaccines can save the day. Unfortunately, even when effective vaccines become available, it’s going to take quarters, if not years, for the economy to recover.

Additionally, COVID-19 isn’t the only thing that’s weighing on the global economy. Let’s not forget about trade wars, anti-racism protests, low energy prices, high debt levels, and the upcoming U.S. presidential election. They all add pressure and or uncertainty to the economy.

With the above backdrop in mind, here are two stock investing strategies you can consider. 

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