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As I type this, mainstream financial news sites and their You Tube channels are flooded with predictions of DEPRESSION NOW, 40% DROP SOON, etc, etc. These predictions come from very well-known and prestigious authors, fund managers, etc. So - what do you make of this? how can you invest in the face of these messages?
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WNYfellow,

Welcome to the Fool.

"how can you invest in the face of these messages?"

Being retired, I have time during the day to invest!

Seriously, I have owned stock since 1987. I can't even guess how many times all the "experts" have forecast "corrections", "double-dip recession", "recession next year", "recession in the last half of the year", and on and on ad nauseam. The horror stories never seem to end

Will we have a follow-on recession or a full-blown depression? I don't know. If we do, I will deal with it.

Am I going to do anything special to prepare for it? No.

I am not selling-off stock or buying into hedges.

We have sufficient cash to last more than 3 years exclusive of portfolio assets. Our portfolio produces sufficient cash for us to live on, if needed. During events like this, we live off the outside cash and let the dividends accumulate for future investment.


Does that help you?

Gene
All holdings and some statistics on my Fool profile page
http://my.fool.com/profile/gdett2/info.aspx
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So - what do you make of this?

Ho hum, the end of the world is coming ... again.

how can you invest in the face of these messages?

Ignore the chatter. Yes the stock market will go up, and yes the stock market will go down. Happens all the time. Sometimes for longer then others.

So, what to do?

There are two types of people in the stock market; traders and investors.

Traders buy and sell all the time hoping to catch a stock on the way up and sell it just as it starts its way down.

Investors buy stocks they believe will are good stocks and hold them.

My personal strategy (arrived at after much buying and selling) is to buy dividend paying stocks that have been paying increasing dividends for at least 25 years and hold on to them through thick and thin.

Here are some lists of stocks that have been doing that (You may notice some overlap):

https://www.dividend.com/dividend-stocks/25-year-dividend-in...

https://www.kiplinger.com/slideshow/investing/T018-S001-divi...

https://www.forbes.com/sites/moneyshow/2019/05/23/mr-wonderf...

https://www.investopedia.com/best-dividend-stocks-4774650

Good luck!

Dave
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Thank you both for your replies.
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"As I type this, mainstream financial news sites and their You Tube channels are flooded with predictions of DEPRESSION NOW, 40% DROP SOON, etc, etc. These predictions come from very well-known and prestigious authors, fund managers, etc. So - what do you make of this? how can you invest in the face of these messages?

*********************************************************************************

Diversify.
Do not invest funds you need to live on in the next 5 years.
Do "due diligence" on firms before investing in them. Watch out for excessive
debt, payouts that exceed the ability of the firm to pay without borrowing funds, etc.
Try to avoid "falling in love" with a story, a market, an industry.
Try to avoid buying a "falling knife" or a "dead cat bounce" - keep your eye on the
fundamentals - recognizing that some industries will take years to recover.

Basically, remember that the press is paid by the click. Disaster stories will accumulate
more clocks than "we might just survive." stories.

Howie52
Also, remember that should the economy drop - the drop will impact everyone for the most part
and will also impact all sectors. The market is both efficient and inefficient - there are
always opportunities. While the market routinely makes mistakes in valuation - the market also
can continue to make mistakes for a lot longer than you can stay afloat if you are an individual
investor. So, that "due diligence" thingy is really an important thing to do.
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sorry for the delay - thanks :-)
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