The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/goofyhoofy-lots-of-good-advice-one-other-thing-29038131.aspx

Subject:  Re: high yield dividend funds Date:  1/18/2011  10:05 AM
Author:  codger41 Number:  68280 of 75383

Goofyhoofy,

Lots of good advice. One other thing to mention is that your entire portfolio may drop 50% in value in a short period of time. Historically the market turns up the next year after a drop, but it may take several years to recoup the loss. And the market was down each year for three consecutive calendar years in the early 1970's, giving the exception to the historical precedent of a recovery commencing the next year after a drop.

I see that you do not have a fixed income aspect to your portfolio. But what is a safe "fixed income position" today other than low interest CDs and cash itself? I am wrestling with the problem of whether to buy more dividend stocks or hold on to the cash awaiting better interest rates or a buying opportunity (assuming I would recognize a buying opportunity if it bit me on the tush).

Pretty gutsy to reveal your positions, too. I wonder how your selections match up against the Motley Fool Income Investor portfolio, or SDY, the S&P 1500 Dividend Aristocrat ETF. Should be a close match to either.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us