Are Income Stocks Recommended?

Are Income Stocks Recommended?

I do not believe most people should buy common stocks for dividends or income. In theory, income stocks should be safer, but don't be lulled into believing they can't decline sharply.

People think utility and bank stocks are conservative and that you can just sit and hold them because you are getting your dividends.

How about Tax-Free Securities and Tax Shelters?

 How about Tax-Free Securities and Tax Shelters?

Should you consider tax-free securities and tax shelters? No, I don't  think the average investor should use these investment vehicles.

People seeking too many tax benefits frequently end up investing in questionable or risky ventures. The investment decision should always be considered first and tax considerations made a distant second.

Buoyed by strong treasury gains, banks have registered healthy profit growth. But asset quality concerns remain, especially for PSU banks

With the earnings season drawing to a close, banks have wrapped up the second quarter with positive surprises on the margins front and some blushes on the asset side. While net interest margins showed marked improvement, by 10-20 basis points sequentially, business volumes floundered as credit offtake was muted. Asset quality continued to be a matter of concern, especially for state-owned banks whose growing restructured books are showing signs of slippages.

There was a marked slowdown in advances growth in the September quarter, as banks went slow on disbursements of home, auto and consumer loans. Loan growth was only 9 per cent y-o-y. “Even top private sector banks, like ICICI Bank, are going slow on retail lending;’ says Bhavesh Kanani, analyst at Sharekhan, a local brokerage firm. “1 expect credit offtake to be somewhat muted in the third quarter, but it should revive from the fourth quarter.