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

To: Steve Felix who wrote (34164)	9/21/2022 10:01:27 PM
From: Rarebird	Read Replies (2) \| Respond to 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.

To: Steve Felix who wrote (34164)	9/21/2022 11:19:55 PM
From: Rarebird	Respond to of 34328

The big problem moving forward here for dividend stocks is that the bond market is beginning to provide value and competition to equity yields. A 6 month T- bill is yielding 3.78%, which is not great, since it is well below the inflation rate. But why should investors buy a stock yielding 4%-5% when they can get a yield of close to 4% with no risk whatsoever? Now I am sure there are CEFs yielding close to 8%-9% that have gotten absolutely devastated that could represent a buy at current levels? I will throw one CEF out there which is yielding over 8% and is up this year without the dividend: HFRO. Some of the 8-9% dividend yielding stocks have a chance to hold up during the next leg down. If I was moderating this thread, I would be focusing on those kind of stocks, rather than the 4-6% yielders, which have a good shot of getting creamed.