Tip of the Week: How to Not Follow the Herd When it Comes to Investing

The San Diego Entertainer’s own financial expert, Steve Sexton, provides the Channel 6 San Diego Living show with a financial tip every Tuesday. We are thankful to be able to share his financial expertise with our readers.

Last week on the segment, Sexton discussed the “bond bubble” and how people are moving in a herd, going in the direction in terms of investment.

This week, Sexton discusses the importance of moving from a bond portfolio to a value portfolio, also known as a dividend portfolio.When looking at a dividend paying portfolio, it is important to pay attention to three essential elements: value, safety and timing.

In regard to value, analysts will determine a book value for a specific stock. A lot of people will buy a stock on its way up. When that stock is over its value, all institutions will sell and the stock will drop down.

Sexton emphasizes the importance of a book value being high. Looking at safety, Sexton advises to ask yourself questions such as:  Is the company going to be around? Does this company have good management? Are the fundamentals in place? If institutions are not buying a specific stock, this stock will not go far. If they are buying a specific stock, you can get amplified gains on top of that and add to you dividend portfolio.

According to Sexton, “Smart financial decisions do impact the quality of your life.”

Steve Sexton is a financial expert who personalizes each individual’s financial plan on their unique circumstances and goals. He has over 15 years experience in the financial services industry and holds multiple licenses and designations including being a Better Business Bureau member and a National Ethics Bureau Member.

If you would like to learn more about securing your financial wealth and freedom, planning for your retirement or to reserve a spot in one of Sexton’s free financial workshops you can visit www.sextonadvisorygroup.com. Or you can reach the Sexton Advisory Group by contacting Steve Sexton at [email protected] or by calling 951-695-8810.

Don’t forget to watch Steve Sexton on the Channel 6 San Diego Living every Tuesday for more financial tips!