From a piece today in the NYT. Carol J. Emerson, 65, sees herself as particularly vulnerable. Her annual income of $50,000 comes almost entirely from dividends, and she says she is worried that as her stocks decline, some of those dividends will fall, too. âIf I were guaranteed that the dividend would remain unchanged, I could ignore that the underlying value of my stocks has eroded,â she said. âBut that is not the way it works. If the value of the stocks doesnât go up again, there are not a lot of companies that can keep on paying a 16 percent dividend.â --------------------------------------------- Now, you know some sleazeball put her into stocks, collected the commission, and told her she was in it for income. Dividends are good. Nice dividends. The biggest fraud in investing is the high yield play.
I already do it. FDIC stuff. And even thats causing me a twinge. Anyone in any stock or bond HAS to be ready to LOSE money permanently . The amount lost depends on how willing you are to sell quickly and the event that causes the drop. If you are not good at cutting losses then don't take the risk.
Guys, if the USD tanks ... waddya gonna do? I would suggest you open an account with someone like InteractiveBrokers and keep your base money in EUR. Doesn't that seem pretty secure? Also - IB has global presence so you can pretty much trade anywhere in the world... sounds ok, no? You would be safeguarding by sitting in EUR and could make a caboodle of ca-ching-ching..
Yeah, sure we're getting out of USD, but you want to have some kind of yield. Those dividend payers was something I was looking at.