Nasdaq Correction: Is This High-Yield Dividend Stock the Right Place to Run for Cover?
Stock markets rise and fall over time. It's just how the markets work. But just as predictable as the pendulum swing from bull to bear (and vice versa) is, so too are the emotional swings that investors go through. Right now, investors are clearly selling assets, but they are also looking for a new home for the cash that's raised. One beneficiary has been high-yielding Kraft Heinz (NASDAQ: KHC). Is that the right place to run for cover?When stock markets fall beyond key yardsticks, investors start to worry. The first big one is a so-called "correction," which simply means that an index -- in this case, the Nasdaq Composite -- has declined by 10% from its highs. Corrections aren't unusual at all, but they are clearly the first stop on the way to a bear market (a decline of 20% or more). Therefore, fear has started to rise in people's hearts and minds.Image source: Getty Images.Continue reading
Stock markets rise and fall over time. It's just how the markets work. But just as predictable as the pendulum swing from bull to bear (and vice versa) is, so too are the emotional swings that investors go through. Right now, investors are clearly selling assets, but they are also looking for a new home for the cash that's raised. One beneficiary has been high-yielding Kraft Heinz (NASDAQ: KHC). Is that the right place to run for cover?
When stock markets fall beyond key yardsticks, investors start to worry. The first big one is a so-called "correction," which simply means that an index -- in this case, the Nasdaq Composite -- has declined by 10% from its highs. Corrections aren't unusual at all, but they are clearly the first stop on the way to a bear market (a decline of 20% or more). Therefore, fear has started to rise in people's hearts and minds.
Image source: Getty Images.
