A small tip about stock investments

Stock market slides always make bad news and always makes everyone worry. Here is the positive way of looking at it, especially if you are more into getting dividends like I am.

Lets say you buy 1 share at 30 bucks and it pays a .40 dividend every quarter. Now all of the sudden it nose dives to 15 dollars per share and so now your value is only 15 dollars instead of 30. Take this opportunity to buy two more shares. For you see, now even if your dollar value is 45 dollars of 3 shares then you will now make 1.20 every quarter on your dividend.

Now in these small amounts that does not seem like alot, but if you let these dividends go back into purchasing more stock, over time it really starts to add up. So in a sense a steep market correction is a good thing.

There is however a bad possibility, that would be that the board of directors decide to decrease dividend payout. Even so, you are still making some money off your investment. Another thing to always consider, in the long run, if they are a successful company, they will probably increase dividends again to attract more buyers to raise their stock price. It's sort of an insane game of ebb and flow, but having investments for your future is always better than having none.

yeah, dollar-cost-averaging works --> but will it continue to be Pay Out effective with the business rolling back the dividend payout to match the decreased price...

in the 2008 great recession, a lot of my dividend payer stocks drastically reduced the payout rates so that the investor never accumulated more shares per quarterly dividends than before the stock price reset...in fact several corporations reduced the dividen rate from a once healthy 2.5% to a losing return of about 1% of the newly Lowered Stock Price

i see this current Market correction going a couple 2000 more points lower than the recent Christmas Rout leaving the DOW below the 22,000 base support line... we are going to retreat to about 20,000 DOW by Feb-Mar 2019 is my guess as the Fed unwinds all their hi-tech stocks & sell all their Fraud-tainted Paper the bought from the central banks @ 100 cents on the dollar...(and They are reluctant to buy that crud back)



i am keeping one finger in the pot to see if the frog-is-in-boiling-water again...i have reduced from 13 to only 3 stocks or funds now...

I can't take another 08....I'm out completely.

In 2008 I got very lucky. I was reading about a Miami housing bubble and got really reactionary for some reason and put everything into bonds. About 3 days later everything crashed. I still have no logical explanation why I took everything out, but I did. And it did save me quite a bit of heartache.

I have some "hedges" these days but I do not believe that any hedge is actually safe.

I am sort of in a buy low - sell high mode. Anyway, the main reason I believe this is a correction is that there is absolutely zero reason for any hemp or cannibis type fund to go down at the moment. And yet they are, and they are nose diving as well.

To me that says that the Fed was too reactive to the market and has raised rates too high and too soon. I doubt they will correct that as I am reasonably sure they are all illuminati lovers. However, I do believe that people are crafty and see around it and keep profiting on the lack of higher taxes.

originally posted by: St Udio


yeah, dollar-cost-averaging works --> but will it continue to be Pay Out effective with the business rolling back the dividend payout to match the decreased price...

in the 2008 great recession, a lot of my dividend payer stocks drastically reduced the payout rates so that the investor never accumulated more shares per quarterly dividends than before the stock price reset...in fact several corporations reduced the dividen rate from a once healthy 2.5% to a losing return of about 1% of the newly Lowered Stock Price

i see this current Market correction going a couple 2000 more points lower than the recent Christmas Rout leaving the DOW below the 22,000 base support line... we are going to retreat to about 20,000 DOW by Feb-Mar 2019 is my guess as the Fed unwinds all their hi-tech stocks & sell all their Fraud-tainted Paper the bought from the central banks @ 100 cents on the dollar...(and They are reluctant to buy that crud back)



i am keeping one finger in the pot to see if the frog-is-in-boiling-water again...i have reduced from 13 to only 3 stocks or funds now...

I think your probably correct about the extant. Not sure about the Fed though.

a reply to: Fools

My system is simple. My 401K is in S&P 500 mutual funds until I feel the stock market is going to take a dump then I move it to the bond fund until I feel the crash is over and it starts going back up and that is when I move it back.

Get the gains, exit for the crash, move back in once it starts going back up from what I think is the bottom.

XRP to save the day!!!

originally posted by: olaru12
I can't take another 08....I'm out completely.

Yes,

I don’t need any help losing my money.

originally posted by: whyamIhere

originally posted by: olaru12
I can't take another 08....I'm out completely.

Yes,

I don’t need any help losing my money.

Copy that...I get better odds at the holdem tables.

Buy & hold physical gold/silver. The stock market is the equivalent of a casino. The same tactics can be used in blackjack or poker. Gold/silver will always retain their value. They have for thousands of years. Gold/silver are also the only markets not in a bubble right now. Gold/silver are highly manipulated like all markets. For every ounce of physical gold there are at least 300 ounces of paper gold. Some say that for every physical ounce of gold, there are over 1000 ounces of paper gold. If contracts ever require delivery of this gold, the price will increase exponentially, maybe even to $100,000 per ounce. Also, as technology advances, and we start traveling in space more, the price of Gold will also rise. The trick is to buy gold now while its price is low and sell it when the stock markets & real estate markets are at their bottoms. During the 2008 financial crisis stock and home values decreased by at least half, at the same time gold's price nearly doubled. Right now were witnessing the continuation of the 2008 debt crisis. The Federal Reserve Bank tried to solve the debt crisis by issuing more debt in the form of quantatative easing, also known as hyperinflation of the money supply. Now the new norm for interest rates is 0% and the FRB is in a catch 22. The FRB had 2 choices. More QE, which is hyperinflation of the money supply, which will lead to higher consumer prices or increasing interest rates, which will cause stock market and real estate market prices to collapse. They chose to raise interest rates for the time being. Imo, anyway one looks at it, Gold & silver prices will be moving higher.

a reply to: St Udio

I'm assuming there is going to be another a rally then another huge dip

I would wait and take short term put options out on FAANG stocks and like Olaru move into cash, gold and silver especially mining stocks

originally posted by: ttobban
XRP to save the day!!!

XRP is a safe bet for sure

a reply to: olaru12

Very ignorant decision

a reply to: Fools

Only ones who make money in the stock market are the ones that control it,nothing but a facade something they can blame when they have drained the country dry

a reply to: Oldtimer2

That's weird that you say that since I have always made money off the stock market and I don't control anything. Now am I a millionaire? No. Will I be able to retire at a comfortable age? Yes.