The market indicators have slipped from greed to neutral over this past week.
It’s starting to feel as if the volatility in the market to getting to be too much for some.
This is another reason why I have been looking more into dividends as a longer term growth strategy. When the goal is to buy and hold, dips can actually benefit your portfolio in some ways.
I like to think of it like Buffett’s punch card approach. If you could only invest 12 times in your life, what would you do?
That’s not to say you should only invest twelve times. It’s to say you should do enough research so that if you did only invest twelve times you would be able to survive in the market.
Research is particularly important in a volatile market like the current one.
It’s made even more difficult because some potential trends in a stock aren’t as closely tied to the company financials as they may have been in the past.
The ease of investing made available by investment apps. They even call it the “Robinhood effect”.
Research itself has (at least) two fronts that need to be taken into account. The first is the company financials. The second is your investment strategy.
I’ve been studying more of the strategy lately so I can better assess the companies that fit.
I’m trying to keep my focus narrow but deep at the moment. Strong focus on dividend stocks that can pay me over the long run.
I’ll start working to articulate more of these fundamentals in the future – as much to better my own understanding as anything.