Thursday, July 23, 2015

How to sleep better when the bears rule

In the 2008 market drop many people lost a lot of money. Especially those that panicked and got out of the market. They bought high and sold low. I was worried, but held on to my stocks. Everything bounced back, and then some.

Today, I could really care less about what the market does. I'm invested in solid companies, that have weathered bear markets before. Throughout these markets these companies have continued to pay their shareholders dividends, and even increase the payouts.



My dividend screener awards dividend streaks, and punishes cuts or misses. Companies that increased for 10+ years, meaning through the last recession, are rewarded. I believe their business model will hold up through the next down turn. In fact, down turns mean buying opportunities. You can't time the market, so keep buying when it goes down, and keep buying when it goes up. You'll end up with a nice dollar cost average.

Bottom line -- when you invest for dividend growth and pick solid companies, you don't have to panic when the bears rule Wall Street.

No comments:

Post a Comment