I don't think I took it the wrong way, or denied the market could fall more.
A year ago as the market was hitting new highs, buying preferreds instead of looking to buy an "undervalued"
dividend growth stock, was caution. Don't pretend to know when a pullback would happen, or the depth, but
pretty sure anyone who has been in the market any length of time, knew it would come.
I'd be curious how others use caution, or if they do.
What would you say an investor like David Van Knapp should do as far as caution? Where does caution fit
with DGI? I think he does a great service. He prides himself on buying "undervalued" dividend growth
stocks. His only defense lately is to sell some lower yields for higher yields, and step out to some extremely
high yield with some QYLD. When the market really left him in the dust, he said it was because of the
FANG stocks and a few other tech stocks were going crazy. Now that they have fallen big, he still hasn't
caught up. He has more income than he had last year, which evidently makes him a winner, although once
again, he could buy more income if he had invested in SPY. Jmho, and regardless how long it takes, when
the market recovers, he is going to need binoculars to see it, and it will be even more obvious he should
have just bought SPY.
For the record, end of August:
DVK $168,315
SPY 3986 |
