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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: golfer72 who wrote (21227)	11/27/2014 12:51:50 PM
From: JimisJim	Read Replies (3) \| Respond to of 34328

The longest bust in the past 30 years was 2 years... worst case now would be 3, but remember that the surpluses we're seeing in the US are largely from shale fields that are on quite the fast production treadmill with steep decline curves... prices go below $60 -- and they could -- and you will see prices firming as producers get off the treadmill, finally -- this is what finally turned the corner in ng when the shale ng producers finally cut production as ng approached being free essentially.

To: golfer72 who wrote (21227)	11/28/2014 1:12:24 AM
From: Raptech	2 Recommendations Recommended By JimisJim upanddown Respond to of 34328

Generally I would agree with you that it would not be a good overall investment strategy to average down on losers in your portfolio, except it really depends upon the time horizon one has and of course on the equity involved. In the case of SDRL, as with all equities, it's difficult to call the bottom so starting a new position with the knowledge it may go down more while accumulating at a lower price to me is cost effective for an equity you do expect to turn around. The decision here is that I am not investing in a stock, but a company and industry that I feel will recover in a reasonable period of time. Conversely, if I was lucky enough to buy the bottom I will also average up. In a sense reinvesting dividends is averaging down and up. Although, over time I do buy and sell both losers and winners in my dividend portfolio. Also dollar cost averaging that is advocated in many 401K and mutual fund plans average down and up depending on market and stock price changes at the time of additional investment.