Here is where the rubber meets the road for most of us who are retired, almost retired, ready to retire, or even thinking about retiring.
We have had a sell off. Do we panic and run? Or do we relax and pick?
Yes, I know it's difficult for anyone to watch a sea of red overtake our portfolio screen as we watch it all day (well, some of us do that) and WISH it green and complain about the world around us. (Yes, some of us do that also.)
Running away and selling out never helps our portfolios, and then we would be reluctant to get back in I think. Don't get me wrong, i am not advocating that we just stick our heads in the sand and ignore everything. I am suggesting that we sit back and take a look at what is going on, and try to think clearly. For me, sometimes that's difficult because i also get caught up in the moments, but then it hits me. What has changed this week from last?
Well, nothing in my opinion, except the usual noise in Europe, which I contend will be settled even in the face of those glorious outbursts from over there.
That being said, let's look at some stock suggestions from MY portfolio and see where we stand, so we can "pick" away at a few really good stocks, on sale:
1) Johnson and Johnson (JNJ) - Oct.27th price: $65.39, Nov. 1st price: $63.36
2) Exxon Mobile (XOM) - Oct 27th price: $81.05, Nov 1st price: $75.68
3) General Electric (GE) - Oct 27th price: $17.38, Nov 1st price: $16.01
4) Annaly Capital Management (NLY) - Oct 27th price: $16.91, Nov 1st price: $16.63
5) Exelon (EXC) - Oct 27th price: $44.22, Nov 1st price: $43.55
6) Intel (INTC) - Oct 27th price: $25.10, Nov 1st price: $23.90
This well balanced, well diversified group of stocks, which I myself own, have a few things in common:
a) They have all come down in price (they are ON SALE)
b) Nothing has fundamentally changed
c) They all have very good dividend yields (which just got better)
In my opinion, it's time to do a little shopping perhaps, and if you have some cash sitting on the side, now might be a good time to pick some of these to actually start a core position or add to an existing one.
Based on my other articles on dividend and growth stocks for retirement, which I embrace and so many of you folks embrace, the question should be: why not pick a few items on sale?
I can't find many reasons right now, and I do understand they can dip further, but as I said, NOTHING has changed.
We all hate days like what we have had, and the volatility of the market does scare people into INACTION, and doing nothing is a good strategy, but adding to, or even starting a position in a core stock is also a very good strategy when the fundamentals are sound, and the stock is on sale.
Something to think about? Absolutely.
Additional disclosure: I will possibly add INTC this week as well.