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Tuesday, March 6, 2007

Even Good Stocks Get Clobbered During Selloff

Good investments fall with the bad during a selloff. Some investors were surprised that dividend paying stocks and income trusts fell during last week’s crisis. Normally income producers are a refuge.

The problem is that when there’s a big stock market panic, investors often have to raise cash to pay off margin accounts, and that causes them to sell good dividend paying stocks.

Income investing is still a good place to be in today’s uncertain markets.

My top picks (see the web site) still stand.

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