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Kyle Harrington, Harrington Capital Management, LLC., founder and managing partner, gives his tips for making smart investment choices while the volat...
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The mercy of Europe tell parents and its founder and managing partner parenting capital management and he joins us now -- were still at the mercy of Europe.
I think that you know there is significant limited visibility in the marketplace right now and as a result Charles I think.
We're we're gonna focus on is again back to the dividend yielding stocks stocks that we're gonna get rewarded for so for example a Kimberly-Clark for example.
This is a stock that pays at three point 9% dividend yield.
For the last 39 years in a row it is increased its dividend year fifty years so it's considered a dividend aristocrats.
Which is if the companies paid their dividend and increased to 25 years in a -- this company's been 39 years in -- It's a consumer based company so you -- brand that you would recognize would be Kleenex.
So to boring company but we're gonna look at the valuations and we're gonna look at the dividend yields and put money to work in that area.
But don't really run into the risk with ease -- with east so called -- -- plays that exposure to markets like Europe exposure into markets like Asia.
The earnings side it could be compromised as a result he may not have growth in terms of the stock price of the dividend yield is there but again three point 9%.
It's something but a lot of investors just want more.
-- I know -- -- I mean.
There's a lot of the investors that we're talking to one -- day to day basis want more than that but when you look at two when you look at ten year treasuries below 2% we look at your savings account that's.
Three quarters of 1%.
You know the this is -- three point 9% while -- investors do want more.
This is some in an area at least that we can consider -- realistic.
-- if you have some really great -- and don't tips out there is for our viewers in and they alike to gotten take down notes one of the ones that I liked is.
If you don't understand it don't invest in and I think that's a good month trapped daring and -- can probably -- that -- there's so many complicated things out there that.
That seem alert rain but may not be the right -- for.
And I think we've we we fell into this Charles and I spoke about this before.
We fell into this in the in the dotcom era where they were a lot of four letter ticker symbols that people didn't understand and they just said -- was up.
Twenty points today or thirty points they let's go investment.
But you know we're we're gonna stick with it if you don't understand it don't invest in it OK don't overlook.
Tax deductions that you may be able to take in order to preserve your tax bill.
And don't spend every dime that you make I mean I know it's difficult to stay in this marketplace.
But he.
Focus on preserving the capital that you do learn and and and avoid just spending it.
You know so funny because.
The for a while you know in the in the ninety's and ignorance was not only -- was profitable but that's what I'm worried about right now.
The rally that we saw in October and we saw some pretty good result in -- market last week as well I was calling the dirty thing -- rally is it possible.
That we can be so defensive that we actually miss opportunities.
Beneath the saga beneath agree saga and in Italy saga you know earnings from Caterpillar.
Earnings from common -- and some real solid rock solid results that are.
Could it could it could we actually miss out on those opportunities because we're so fearful of of Europe.
I think that the answers possibly yes and that's why in one of my dues areas.
I talk about don't be if you didn't do invest abroad or do invest across the ocean because.
I think that there -- markets for example.
Chile now okay this is a country with fifteen million people.
They haven't an eight plus credit rating as as Standard and -- -- rating.
OK and then there there -- control 13 of the world's copper supply so there are other markets outside the US that you can diversify into.
And have actually less risk.
Why don't you -- year one of your principles they're don't invest in things you don't understand meaning how how many of us actually know any being about -- you know in terms of what their market prospects are what's happening in their economy.
Yes there's growth and and profits to be had but.
We don't know anything about it.
Great point I mean I always argued that in -- -- in London you know you don't really know Europe and the same sentiment could go here yeah that's why instead of in this area investing in.
Individual Chilean companies my recommendation is to go more toward a mutual fund or an index fund.
That represents a basket of Chilean companies that have been vetted by the so for example ECH I mentioned which is an -- shares.
Index -- of Chilean companies.
But the but the bottom line of cows are saying be defensive but also stay in the minutes -- it's a dividend paying stocks get paid -- -- And also even -- -- get a pieces global economy would still growing.
Outside of the European hotspots -- absolutely right thank you very much thank you -- Arrington from parenting camp.
