I'm Beginning To Like "Down" Days

[Dividend Watcher]

Looks like we're going to end up down for the week. I'm beginning to like these.

Sure, it's no fun watching the market value of your portfolio plummet but this is still mild. Maybe we'll actually get a correction finally which, in the olden days, was a 10-20% market drop. Yet, at these levels, I'm still not gaga (not the Lady) over pricing just yet. It was so much more comfortable to step into positions with a 10ish P/E and yield hovering in the high-3% range like the 2010-12 period. Every shiny object caught my eye and then it really was work narrowing my choices.

On the bright side, my income stream is still up over last year. My wife's is too despite ESV cutting the hell out of their dividend.

What I'm trying to say is don't be nervous with this tiny volatility. Stay calm, buy quality companies and get back to work.

Speaking of which . . . . . . . . .

[Kerim]

(03-13-2015, 12:26 PM)Dividend Watcher Wrote: Looks like we're going to end up down for the week. I'm beginning to like these.

Great post -- me too! It is how I know I am suited to be in the market long term: up days bum me out and down days make me happy!

[Jimbo]

That is one of the most important things I have learned here, DO NOT let the swings up or down affect you. I explain to my kids, love the down days for now as you get more for your reinvestment dollar.
I read posts here some time back about swan, stocks and this to me is part of it.

[hendi_alex]

It is easy to have your attitude when a portfolio is small and growing. Much more difficult if close to retirement and the drop takes a $1.5M portfolio to under $1M for example.

[Jimbo]

Very true Hendi, and for those like that I feel bad. I have a good 20yr time.
Good to see you again, I was beginning to wonder where you were.

[Dividend Watcher]

(03-13-2015, 07:30 PM)hendi_alex Wrote: It is easy to have your attitude when a portfolio is small and growing. Much more difficult if close to retirement and the drop takes a $1.5M portfolio to under $1M for example.

Hardly. Try it with no pensions, the 2nd highest tax rates in the country and businesses that drop by at least 20% in each recession. If I had a portfolio of half that size I could retire today. It's all relative. You just have to plan.