Time To Own Dividend Stocks

Most investors have heard the story many times that the best time to own stocks is the six month period of November through April.  I agree with this historical pattern.  Another way to know when you should be invested is by comparing the charts of 7-10 year bonds (IEF) and SSO, the leveraged S&P 500 ETF.  As you can see in the chart below from Google Finance, SSO crossed over IEF in early January signaling a huge upside for the stock market.

Unfortunately, the best time of the year for owning growth stocks has now past.  There is still high interest in the stock market since 10 year treasury bonds are now selling for less than 2% yield.  Most people are going to put their money where it will earn the best return.  However, the good times for stocks will not last forever.  We are now entering the six month period of May through October when stocks are most volatile.  If you want to play it safe, you could own a couple of high dividend REIT stocks during this time.  AGNC is paying more than 16%, and ARR is paying more than 17%.