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Welcome to the "Wolf Creek Pass" School of Monetary Policy

I don’t know if you folks remember that hit ditty: a humorous tune about two truckers attempting to manhandle an out-of-control 1948 Peterbilt down the “other side” of Wolf Creek Pass – a death-taunting section of U.S. Highway 160 where the elevation drops a hefty 5,000 feet in a relatively short distance.

The song’s two characters – a truck driver named Earl and his brother, who’s his partner as well as the song’s narrator – are taking a flatbed load of chickens on a speedy trip down this winding, two-lane Colorado highway. After the narrator gives Earl the above-mentioned warning, the ancient semi’s brakes fail.

From there on down, the narrator tells us that the brothers’ trip “just wasn’t real pretty.” The truck careened around hairpins and switchbacks, and then raced at an uncontrolled 110 mph toward a tunnel with “clearance to the 12-foot line” – with chicken crates sadly “stacked to 13-9.”

The drivers and the runaway Peterbilt “went down and around and around and down ’til we run outta ground at the edge of town… and bashed into the side of the feed store – in downtown Pagosa Springs.”

Believe it or not, I started thinking about this funny old country tune the other night – right after I’d read a piece about QE3 and the U.S. Federal Reserve.

As zany as it first sounds, the parallels are striking.

  • Six Dividend Stocks to Hold Forever Investor. Now there's a word you don't hear much these days. "Buy and hold," they tell us, has gone the way of the dinosaur.

    Today, it's all about the fast money. In the market, out of the market... this stock, that stock...

    Of course, that's perfectly fine for traders. The good ones earn small fortunes that way. But for folks who don't have that kind of experience, being nimble is simply an invitation to be whipsawed by the markets.

    You may be one of them.

    For instance, are you fed up with stock recommendations that only seem to last a couple of weeks?

    Or do you constantly find yourself buying on a day when the market is hot, because you feel enthusiastic, only to end up selling on a bad day, because the same stock suddenly looked less attractive?

    If so, there's a solution to all this day-to-day madness. Despite the rumors of its demise, there are still stocks you can buy and hold forever.

    Of course, seasoned income investors have known this for years. That's why the truly rich don't spend their days watching the financial news and trading stocks. They're too smart for that.

    They know that investing in steady-income producing dividend stocks is just as rewarding over the long haul.

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    However, picking successful dividend-paying stocks is not as simple as buying only the stocks with the highest yield. In fact, the stocks with the highest yields are often the ones that trip up investors the most.

    When it comes to buying stocks you can truly hold forever, what's important is the company's track record.

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  • Preserve Your Wealth with these Large-Cap Dividend Stocks Congressional leaders yesterday (Tuesday) finally settled on a debt deal, but the ineffective compromise is not enough to prevent a blow to the U.S. markets and the dollar - meaning it's time to preserve your wealth with large-cap dividend stocks.

    While the coming period of market uncertainty could be a great opportunity for rational investors to explore newly created investing options, there must also be a focus on wealth preservation.

    To that end, Money Morning Contributing Editor Shah Gilani joined FoxBusiness' "Varney & Co." programTuesday to explain why the debt-ceiling deal's weakness makes defensive investing with large-cap dividend stocks imperative.

    "The sideshow may be over, but there's no agreement on paring down our debt," said Gilani. "The problem isn't going to be fixed by just cutting spending."

    Indeed, investors remain exposed to the fragile U.S. economy and volatile financial markets.

    "To be safe in these uncertain times I like a simple well-rounded and ‘tight' portfolio," said Gilani. "I like the new stuff, but in times like these I also like to be defensive - better safe than sorry."

    To continue reading, click here...