TAG: Investor Behavior
Historically-low interest rates have encouraged income-focused investors to “search for yield.” Many investors have turned to dividend paying stocks as a way to generate a higher level of income. But, over time, does a focus on dividends pay off for investors?
Expectations of all market participants combine to set both stock prices and point spreads. An individual has to be extraordinarily confident (or oblivious) to think they can outsmart the crowd.