4 February 2011 Private investors piling into shares Launch of Dividend Income Portfolio is Imminent! Dear Subscriber With some City pundits forecasting the FTSE100 ending at 7000 by the end of the year, you may say that we are running out of lowly valued high yielding quality companies. At the end of last year, as savings rates fell to near record lows, private investors bought shares at the highest level in over a decade. According to recent figures, published by the Investment Management Association, during December 2010 a net £1.72 billion was spent by retail investors on shares, the highest amount in a single month since April 2000 at the height of the dotcom boom. Richard Saunders, chief executive at the Investment Management Association, said: "Consumers continued to increase their investments at record rates in 2010." In comparison to 2009, there was £7.5 billion of net retail sales of equities, up from £7.3 billion. Some experts, as well as Early Retirement Investor.com, fear that not only the numbers of retail investors piling into the stock market, but also current levels of the stock market are getting into "bubble territory". In Just six months, the FTSE 100 index has shot up from 4,800 to hit 6,056 during January, 2010. That's a 26% increase! On the basis of what, you may ask yourself? Most of the impact of the austerity cuts in many countries still awaits us . . . Other experts have expressed views that the stock market is not (yet?) in "bubble territory" but still confirm that investors are taking on "a lot of risk" by moving money from saving accounts into shares. Running out of quality companies? With savers and investors being persuaded by the “financial” media to move into companies that pay dividends, it will become increasingly difficult to find under-valued high yielding quality companies, unless of course you utilise a proven strategy to unearth companies when they are truly undervalued, as mentioned in an earlier issue of Dividend Alerts. But what if you still have money that you want to put into long-term equities Right NOW and you need an above inflation safe dividend yield: what and where should you be looking at right now? As the latest Capita Registrar Dividend Report outlined, the general outlook for dividends appears to be improving for 2011. Companies are increasing their dividends, while some others are re-instating dividends, albeit at (much) lower level than before. That is good news, in itself! In particular, if, for whatever reason share prices from high quality companies with steady dividends start to decrease for the (according to some respected commentators) "final leg down", later this year. At least I am ready to take advantage of quality companies based at truly undervalued share prices. Because we have cash sitting idle in my portfolio! I hope you can join me to. So, as long as we all can agree that everybody’s long term investment goals vary, I think now is a good moment to let you know that the . . . Launch of the Dividend Income Portfolio is Imminent! I’m so serious about helping you grow your wealth through these tricky times. . . I’m putting £70,000 of my own money where my mouth is. I am creating the Dividend Income Portfolio at Dividend Income Investor.com because several readers of Dividend Alerts told me that they needed more than just investment write-ups — they need the confidence to follow them. Now, you never have to wonder if I’d buy these companies myself — because I AM buying them myself, with my own money! Here’s how it works: I have opened an ISA brokerage account at TD Waterhouse, in order to be able to invest in both London listed stocks as well as shares listed on a number of stock exchanges abroad. I have sold out the majority of stocks in another ISA, earlier in January, and transferred just over £70,000 of cash into the TD Waterhouse ISA account, as well as two high yielding stocks. Right now, my £70,000+ is sitting there in cash, waiting for two things to happen: early next week, one trading day before I start investing, Dividend Alerts subscribers will get a 24-hour head-start alert when they will receive the very first edition of the Dividend Income Report for free; not only disclosing the name of the company, but also the reasoning behind why I’m going to buy it, and for how much second, I am waiting for the sign-up/subscription part of the web site to be finalised and fully tested prior to inviting you to become one of our charter subscribers at a much reduced rate so that you can start accessing the evolving premium content part at Dividend Investor.com. Once Dividend Income Investor.com is fully operational you’ll be able to start enjoying ALL the benefits of your subscription, including: Dividend Income Portfolio Dividend Income Profiles Dividend Income Report Dividend Income News Dividend Income Tables of overvalued and undervalued companies as we construct our portfolio. Of course, you don’t have to invest the same amount I am investing. Also, you don't have to invest at all! Nor do you need an ISA account at TD Waterhouse. Why I’ve Decided To Let You See Everything I Buy or Sell BEFORE I Buy or Sell Normally, the investments in a share portfolio like mine are strictly private. You’d never see the actual transactions — let alone get an advance alert of what the investor is going to buy or sell. I’ve invested £70,000+ hard cash in this value-based portfolio because my LARGER objective is to help you grow your wealth, starting right now in this market. . . and then to help you grow your wealth again during and after we touch rock bottom and up again. That’s why I’m opening up my portfolio to all investors who become subscribers of our premium content at Dividend Income Investor.com . . . They will be able to see how my actual portfolio develops, including all dividend receipts, profits and losses. Plus, if you like what you see, you can invest before I invest. That way, if anyone has a strategic timing advantage, it’s subscribers like you. The Ultimate in Confident Investing You can be 100% assured that every investment I make in my Dividend Income Portfolio. . . will be made in full compliance with my investment criteria if you wish, can be bought quickly and easily in your existing brokerage account, and . . . will be carefully balanced in a diversified core portfolio for enhanced safety, dividend growth and profit potential. Remember, we’re in this together! I’m so confident to build wealth using our investment research process that I’ve put more than £70,000 of my own cash into this portfolio. Shouldn’t that tell you something? I sincerely hope it does. As always, we appreciate your feedback. Thank you for reading. Watch out for the first edition of Dividend Income Report Until next time. Kind regards Steven Dotsch Editor Early Retirement Investor.com Know someone who'd like to receive Dividend Alerts themselves? Simply forward this link to anyone you think could benefit from our publication: https://www.early-retirement-investor.com/dividend-alerts.html Dividend Alerts is an unregulated product published by EMAR Publishing, publishers of Early Retirement Investor.com EMAR Publishing is not registered as an investment advisor or financial advisor. We do not and will not provide personalised investment or financial advice, or individually advocate the purchase or sale of any security or investment. We publish opinionated information about the stock market and companies that we believe our subscribers may be interested in. There is no guarantee that dividends will be paid. Figures are calculated using the closing prices. All gains are gross, and returns will be affected by dividend payments, dealing costs and taxes. Profits from share dealing are a form of income and subject to taxation. Tax treatment depends on individual circumstances and may be subject to change in the future. Editors or contributors may have an interest in shares featured. Past performance and forecasts are not reliable indicators of future performance. Shares are by their nature speculative and can be volatile. Your capital is at risk so you should never invest more than you can safely afford to lose. Information in Dividend Alerts is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment or financial decisions. Appropriate independent advice should be obtained before making any such decision. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. © 2010 EMAR Publishing. All Rights Reserved. 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