iShares Dow Jones EPAC Sel Div Ind (ETF) (AMEX:IDV)

Long term dividend play

Invests in dividend paying stocks, and is not constrained to one specific sector or country. Dividend paying stocks are less likely to go belly up when markets are stressed

Market will be in for some harsh correction, but I think dividend paying international issues will weather the challenge. Given the precariousness of the global economy, I am staying away from small caps, which would be great if things were headed up, but instead I'm opting for a blend of dividend paying stocks.

Why?
1) The downturn is great at picking winners, and this EFT adjusts to pick up the proven high-dividend payers, from the COs that remain. The whole wide world is a bigger place to find the emerging winners, that pay dividends.
2) It has become a cliche in some circles that the US dollar is headed for hyperinflation. I think that is silly, but if a lot of folk think so, you can trade as if it were true. Dollar instability, either deflation or inflation would make international stocks a relative save-haven under a currency instability, and as they say, collecting dividends while you wait and see is not so bad.
3) Dividends are a nice way to battle back against a sideways market, which I think is essentially what we will have over the next 5 years. Those few cents add up... and this issue seems to have a little levity under the bad conditions.
4) The world is chock full of adolescents: there are more 12-19 year olds today than ever in history, and maybe ever will be. Where? In the developing world. There is no doubt the big economic growth will be in the developing world, as billions of young people start out earning and buying, and strive to make it. Sure the developed world will sell them Windows7 and other high mark-up stuff, but the big gains will be indigenous. That means investing in international stocks.

The next wave of conglomerates will be internationally southern, and they are just in their infancy. Get in while they're cheap...