It's quite likely that the next few years will be Sideways or possibly stick within a moderate trading range. I don't see any growth prospects in the market and there is not much the government can do to stimulate.
So, how will an extend Sideways Market affect your investment strategy?
For me I'm retired and the only trading I'm doing is to re-invest most of my dividends. Low markets or no growth markets allow me to buy more shares and therefore continue to grow my portfolio. 10 of my 19 stocks have increased their dividend this year, giving me more income and further growing my portfolio.
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Sure seems like it lately, cannew. I would hope for a few corrections butting in over the next few years but neither has changed my plans. Still fully invested, reinvesting some dividends and collecting the dividends from some out-sized positions in the hopes that something breaks down a bit.
If anything, I'd rather the market inched down but I'm not counting on anything -- just looking to add to the income stream for the long haul. 10ish years to our retirement.
As a funny aside, I dusted off my old lunchbox/cooler that I bought when I first got out of the Navy this week to take my lunch to my newish job. When I got there, I realized it was older than over half my co-workers. Talking about a sobering realization!
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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Well, as they say...
It's not a stock market, it's a market of stocks.
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A sideways market is good for me, but I guess it might depend on an individual's strategy and time horizon. I'm still in accumulation phase, so I'm happy if my stocks don't go up as I can reinvest and make new purchases at lower prices.
