Optics, Opportunity, and the Stock-Based Psyche

This week, Doug Stokes and Greg Stokes discuss the state of corporate America, why stock-based investors should treat dividends like rent, the fluctuation of global currency, and why the Federal Reserve is stoking your recession-based fears.

Key Takeaways

[00:31] - What to make of the dividends increase per share versus price increase per share. [05:15] - What the current housing market means for a potential recession. [08:42] - Why it feels like a recession is approaching. [11:39] - The implications, opportunities, and root causes of the decline in value of European currency.

Quotes

[02:06] - “If you were a real estate investor, even though the value of your property was down you probably didn’t know it. If your rents were up 14% over the last twelve months – you wouldn’t really care what the actual value of the property was. The same thing should apply to stock-based investing. In the case of dividends appreciating by 14%, even though the value has fluctuated, and fluctuated negatively, over the last twelve months, your ‘rents’ or your dividends are up 14%. ” ~ Greg Stokes