Added More Exxon Mobil (XOM) To My Portfolio
I’ve owned Exxon Mobil (XOM) for the past 7 years, and including dividends, I’ve had an annual return of slightly over 5% APY. While it’s not knocking it out of the park, it’s not bad for a Dow component, and especially not bad in this economic environment. Exxon, as with other oil companies have been beaten up in the past 2 years, especially in the past 3 months with the BP disaster in the Gulf. For the past three months, Exxon’s stock has declined over 16%, and I think it has been oversold. I’ve been looking for a place to put some new money, and have been looking at FDIC secured investments, but I am frustrated with their poor returns.
Expect Even Lower CD Rates
Want some insight into why savings, CD rates, and money market rates are low and about to get lower? The FDIC recently ruled banks that are not “well capitalized” will not be allowed to sell fixed investment products for more than 75 basis points (or 0.75%) above the national average. Whatever “well capitalized” means is subject to FDIC’s terms. This effectively puts a cap on the highest rate any bank can offer.
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