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Strategies & Market Trends : Dividend investing for retirement

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To: Steve Felix who wrote (34164)9/21/2022 10:01:27 PM
From: Rarebird  Read Replies (2) of 34328
 
No one is denying that a very long term approach of buying and holding and adding on dips is a very successful strategy. And I am not saying that it is different this time. If you believe in growth, capitalism and the USA, then the stock market is a wonderful vehicle to acquire wealth over the long term.

However, the name of the game in the stock market for many is to adapt and make money in all kinds of markets, bull and bear. Why restrict oneself to just making money in bull markets?

I think the point of investing is to heed risk and prevent major down drafts to one's portfolio. Bear market declines are primarily back loaded and there is no reason to allow one's portfolio to undergo a huge drop over the period of a year or two. Wall Street has drugged many into thinking that one cannot time the market. But that is a blatant lie. Powell has been warning investors that there will be pain, pain and more pain. This has been a Fed induced bear market. As I said previously, the worst is yet to come. I would not advise anyone to accumulate stocks until the Fed has at least pivoted. And even when the Fed has pivoted, the damage to corporate earnings and employment will be so severe that it will take time for another bull market to begin. More importantly, there is a distinct possibility that the stock market goes nowhere over the next decade, trading in a very large range, given that globalism and the very mild inflation that comes with it, is now dead. The world is at war in so many ways.

I see no reason to limit myself to profits in a bull market. Bear markets present profit making opportunities in the short term also.
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