I got home today from my real job and my newsfeed exploded. Stock markets are down, as the news will tell you, in their worst plunge in 5 years. The Dow Jones has plunge 1000 points in a week. The NASDAQ is down 3.5%. "Investors" (aka day-to-day speculators) are worried about the devaluation of the yuan, the EU remains bleeding red, oil has plunged below $40 a barrel. There is blood in the street.
Do you know what I'm doing? I've sat back after a long first day in the school year, and am having a cool drink. I own the stock of a major oil company making about 5% dividends a year. I want to purchase more stock in that company, since oil will eventually rebound. That's a guaranteed 5% return every year, made even more secure by the oil industry's reputation for never lowering a dividend. Even if this corporation should lower their dividend this year, I will still be making a 3-4% return. Plus appreciation, since I am in fact buying in a slump.
I own the stock of a major pharmaceutical company responsible for many prescription strength drugs. Currently, they are also yielding a 5% dividend yield. Even if asthmatics and STD bearers completely died out, there will still be enough sick people to keep the pharmaceutical industry afloat. This company is heavily weighted towards Europe, hence the price decrease. I want more of this stock and to cash in on the almost inevitable appreciation.
I own the stock of a major European telecommunications firm currently buying up international market share. The dividend yield is massive, mostly due to capital expenditures, but even the more typical dividend yield seems attractive. If current dividend yield continues, I'll be receiving a 6% return.
I own a few other stocks and mutual funds and Motifs and similar investment vehicles. Some are doing well. Some are not. I am unconcerned.
Long-term stock strategies do not worry about such market movements. 500 points on the Dow Jones in one day does not affect the long-term viability of a good company. Any company destroyed by such movement is, by definition, not a good company. Buy and hold is criticized because it leaves investors exposed to these types of movements, but that is precisely the point of a market correction. The market economy is continually growing. The stock market will, in the long haul, grow.
If I had more liquidity, I'd be buying like crazy right now. I'm a public school teacher, however, so I'm simply buying in as my paycheck comes in. Hopefully, things will stay this cheap in a few weeks...
Do you know what I'm doing? I've sat back after a long first day in the school year, and am having a cool drink. I own the stock of a major oil company making about 5% dividends a year. I want to purchase more stock in that company, since oil will eventually rebound. That's a guaranteed 5% return every year, made even more secure by the oil industry's reputation for never lowering a dividend. Even if this corporation should lower their dividend this year, I will still be making a 3-4% return. Plus appreciation, since I am in fact buying in a slump.
I own the stock of a major pharmaceutical company responsible for many prescription strength drugs. Currently, they are also yielding a 5% dividend yield. Even if asthmatics and STD bearers completely died out, there will still be enough sick people to keep the pharmaceutical industry afloat. This company is heavily weighted towards Europe, hence the price decrease. I want more of this stock and to cash in on the almost inevitable appreciation.
I own the stock of a major European telecommunications firm currently buying up international market share. The dividend yield is massive, mostly due to capital expenditures, but even the more typical dividend yield seems attractive. If current dividend yield continues, I'll be receiving a 6% return.
I own a few other stocks and mutual funds and Motifs and similar investment vehicles. Some are doing well. Some are not. I am unconcerned.
Long-term stock strategies do not worry about such market movements. 500 points on the Dow Jones in one day does not affect the long-term viability of a good company. Any company destroyed by such movement is, by definition, not a good company. Buy and hold is criticized because it leaves investors exposed to these types of movements, but that is precisely the point of a market correction. The market economy is continually growing. The stock market will, in the long haul, grow.
If I had more liquidity, I'd be buying like crazy right now. I'm a public school teacher, however, so I'm simply buying in as my paycheck comes in. Hopefully, things will stay this cheap in a few weeks...
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