While we are waiting for the dust in the markets to settle, I have moved into a high yielding dividend name TNH to get paid while we wait. Its’ parent company CF Corp is a leader in the fertilizer space which is in an ever-growing bull market due to hunger demand, exploding population growth, and now lower gasoline prices, which are helping dramatically with profit margins. So, I believe the dividend is safe and will be good place for investors to park cash in as they cannot get a worth-while return for their money anywhere else. As long as the stop-loss goes in at 189.
Even though, “several downbeat economic reports confirmed what has been apparent since March: U.S. growth is decelerating (Philly Fed, initial claims and housing data disappointed), China continues to see weaker output (its flash PMI was below 50), and Europe remains a mess as several PMIs were worse than expected” (Jim Cramer), I am still an eternal optimist, as I believe there is always a way to make money in the markets- even in the most turbulent times.
However, because of the highly unpredictable, volatile nature of the stock market and high commission costs, I am not even looking to short it. So, by being in 80 % cash, 7k in UPRO, 1k in TEX (booked and 8% gain on friday to raise cash), 2k in FWLT (looking to sell half of that as well on any bounce), and now a starter 2k position in TNH ( yielding an 8% dividend with a stop-loss below $189), we are braced for the impact to come. Remember, as with all down markets, this will provide a real opportunity over time- so keep your heads up!
Regards.
Yields 8% annual dividend. 42% off its April highs along with the market, holding the 200 day moving average (purple line) and resistance at 225 (50 day moving average – orange line)
