Dividend Investing After the Downgrade

“Buying opportunity” does not mean “back up the truck.” Never “double down” on a stock that sunk to what may seem to be a ridiculous value. Buying a stock because it’s “cheap” is no way to build wealth over the long term, and that’s the point of dividend investing. Other considerations--such as the relative weight of the particular stock in your overall portfolio, or the opportunity to use funds to further diversify into other sectors, regions or asset classes--are also important.

The US government, is as explicit terms as possible, said it would not default. Other credible agencies--Moody’s, which reiterated its AAA rating on the US, and Fitch--agree. In fact S&P itself has conceded that it doesn’t see a US default in the future. This is purely a symbolic act, more a statement on Washington gridlock than the health of the US economy and its ability to support public debt. And the latter is what the market is concerned with.

Source: Investing Daily

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