Yes, the market is down this morning. But perceptions have changed of late concerning the economy, so profit taking is in order, not I believe, a resumption of the bear market.
Anyways, getting back to GS, it is a bank now and banks pay dividends whether they are financially healthy or not. From that perspective alone, we are buying, yes, a penny stock financial firm at $90 a share (maybe lower this morning) with the added kicker of a dividend down the road; instead of the partners making fat bonuses annually it will now be the shareholders that reap the reward.
I believe at one time GS was trading at $55 and it can go there, but I believe and any money put down on any stock currently is a belief, not a truth, is bullish since it's still in business.
And that is all you need right now. A company that can stay in business, hold its franchise, and wait for an economic recovery, though it may tarry. Long term it should outpace inflation.
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