06-09-2015, 12:20 PM
(06-09-2015, 10:33 AM)Russellhantz Wrote: I'm just wondering when you see a dip are you more likely to add to existing position or initiate a new one?
To me, the answer to this depends entirely on which alternative is the better value at the moment. If you are desperate to diversify for some specific reason, maybe I'd bias toward the new purchase. But if you have ways to go before retirement, buy whichever is the more compelling value at the time.
As to your initial question in the original post, don't forget that you're talking about less than six months. This is an eye-blink in the world of DG investing. In such short timeframes, anything is possible. Over much longer periods it is fair to expect the value of your shares to increase, more or less in keeping with earnings per share and dividend growth.
More importantly, though, I hope you can cultivate the mindset that -- if you've chosen your companies well -- decreases in share prices are happy and welcome. If you have some time to retirement, you really WANT share prices to fall and languish. It is counter-intuitive to root for your portfolio to decline in value, but really the name of the game is to accumulate as many income-producing shares as you can, and the lower the price you have to pay for them, the better.
As painful as it may sound, the best case scenario is a horrifying recession and dropping / low share prices during your accumulation years, followed by a strong recovery through your retirement years.