Markets

Sears out of CC biz; Citigroup doubles dividend: Revolution at hand

This is huge news. The doubling of dividends is going to sweep through all companies, those that don't follow will see their stocks hammered. This has been coming since the tax bill was passed and now it's here. If you have neglected dividends you are going to be whacked. Watch your stops and get out. Democrats still don't get this. If you still don't understand that stocks won't increase in price 40% but will yield 5% and grow another 5% you are in hazeville. Companies not paying dividends or reducing dividends will be confessing they are in big trouble. Watch yourselves.

Citygroup has purchased Sears Credit (Discover) and other banks will be buying the few remaining independent credit card companies. This means these big banks see an economic turn around that we do not see. They wouldn't be buying consumer debt if they thought for a moment that the consumer was headed toward bankruptcy. Sandy Weill, Citygroup head, is widely regarded as the best financial manager in the world and when he sees recovery and buys a consumer debt company, you are hearing from the best there is.

This doesn't negate my last post, but obviously business sees a recovery that the data doesn't show.