Even during the severe 2008 financial crisis that precipitated a
sharp fall in stock prices, dividend stocks held up noticeably better than nondividend stocks.
However, with stocks rising on a global scale, the price of gold has fallen inversely as it so often does, which has led to
a fall in the stock price of precious metal miners.
We hope investors were able to avoid a portfolio blowup and participate in the 22 %
fall in the stock price.
For example, an investor might not sell a stock when the price falls because he thinks it is valued a lot more than the current price, despite there being a solid reason for
the fall in the stock price.
Fears have led to
a fall in the stock price.
My quarterly purge of a few companies lets me express my doubts, but in a reasoned way, not merely responding to
a fall in the stock price.
For many firms with significant slack assets, they could have resisted
this fall in the stock price, but AIG could not.
A fall in stock price will make the dividend yield to increase.
This will usually lead to
a fall in stock prices.
Thus what might be more likely than a junk rally is
a fall in stock prices.
It increases earnings in the short - run, but when the bear market comes, the debt hangs around, and intensifies
the fall in the stock price.