As U.S. equity markets continue to scale highs, the room for further upside may be limited. Well, the markets are defying this thesis so far but there is an inherent potential downside that comes with fast appreciation and we will come to fully realize the wisdom only when we see a dip in valuations. The government’s sequestration efforts may cause the economy to slow down, or it may be the problems in the Eurozone which brings down the markets. No one knows for sure, but it would be a wise move to look more favorably to dividend stocks such as Roundy’s Inc (NYSE: RNDY ) and KCAP Financial Inc (NASDAQ: KCAP ) now........
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