02-14-2022, 04:36 PM
DGI and index investors can ride out the storm. These are outstanding opportunities if you are still in the accumulation phase. Anyone who is devastated from this normal correction (so far) was holding an inappropriate amount of speculative stocks. Some of those never recover. To succeed you have to learn to endure bear markets, but you don't have to enter them with a port that is sure to be thrashed.
While the market is down the dividend payers will keep on paying, and the quality growth stocks will keep on growing. You may not see it in the share price but that's part of the game. All that said, it was obvious the market was due for a shake up. There was no way I was not going to have some cash. Buying some quality stocks on sale 20% off means I get more shares, and dividends, and that compounds.
I'm not suggesting anyone try to time the market excessively. You'll lose eventually. But this time we knew the market's valuation has only been exceed once in modern history. Add the promise of rising interest rates. For me that meant time to look at my port rationally, and have a little dry powder.
While the market is down the dividend payers will keep on paying, and the quality growth stocks will keep on growing. You may not see it in the share price but that's part of the game. All that said, it was obvious the market was due for a shake up. There was no way I was not going to have some cash. Buying some quality stocks on sale 20% off means I get more shares, and dividends, and that compounds.
I'm not suggesting anyone try to time the market excessively. You'll lose eventually. But this time we knew the market's valuation has only been exceed once in modern history. Add the promise of rising interest rates. For me that meant time to look at my port rationally, and have a little dry powder.