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Investor's Therapy #2: Mass psychology & a pricey market, dividend risk, and much more!

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Hey Everyone, As the saying goes, "there's no such thing as a free lunch."  Well, the same can be sai
 

Investors Therapy

November 9 · Issue #2 · View online
The best investors focus on improving their thinking habits before investing in the market. Investors Therapy is a monthly newsletter that covers all forms of investing and helps investors understand their psychology to make better investment decisions. If you're ready to take the next step in your investment journey, subscribe!

Hey Everyone,

As the saying goes, “there’s no such thing as a free lunch.” 
Well, the same can be said for investing in dividend paying stocks. We assume if we invest in blue chip dividend stocks, we should expect a nice risk-free yield of 1-3%. But as soon as the dividend is called into question, the stock price could plunge (see GE), resulting in a shrinking yield and a costly correction. 
The dividend yield you’re receiving is a payment for the risk you are taking assuming the company will be able to maintain its pricing power in the market,  generate enough money to cover it’s operational costs, and have  funds left over to pay out a dividend. 
Don’t trick yourself into thinking the dividend yield is a free lunch.
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Cheers,
Jordan


Investor Psychology
Mass Psychology Supports the Pricey Stock Market - The New York Times
The mechanics of motivational reasoning
The Full Reset · Collaborative Fund
Stocks
An Investing Scorecard With a Blank Space - Bloomberg Gadfly
General Electric stock dives on fear of dividend cut - The Washington Post
Considerations for Cashing Out of the Stock Market
Startups/VCs
How Valuable Is a Unicorn? Maybe Not as Much as It Claims to Be - The New York Times
Why Successful Startups Stumble at 40+ Employees – ThinkGrowth.org
Whatever happened to “venture is hard” ? – The Startup – Medium
Economy
It's Beginning To Look A Lot Like 1937 - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha
Our Biggest Economic, Social, and Political Issue The Two Economies: The Top 40% and the Bottom 60%
America’s ‘Retail Apocalypse’ Is Really Just Beginning
Bay Area hammered by monthly loss of 4,700 jobs
Real Estate
Nearly half of nation’s largest 50 metros reach overvalue point | 2017-11-07 | HousingWire
Rising Rents Are Pushing More Tenants Past the Breaking Point - Bloomberg
Airbnb NYC | Rent Increases NYC
'The housing market can't take the shock of a natural event,' Redfin economist warns
Google's San Jose village construction has 2025 time frame
U.S. Homes Are Getting Snapped Up at the Fastest Pace in 30 Years - Bloomberg
Watch/Listen
Aswath Damodaran: "The Value of Stories in Business" | Talks at Google - YouTube
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