Strategies For Dealing With A Possible Market Meltdown [View article]
David:
This comment from the article "If you're right and the market corrects, will you go back in or will the fear that drove you out keep you from getting back in?" asks an excellent question. I suspect most folks would re-enter slowly and miss out on some nice stock price rebounds. It's tough to go all cash, accurately "call" the bottom, then go all in. Very tough.
I'm following the advice of Chuck's recent article, and simply watching my individual holdings for "dangerous" levels of overvaluation. None so far.
How Investing For The Long Term Helps Reduce Market Risk [View article]
Chowder:
Thinking about your comment and valuation, it seems to me that time horizon is the key. Traders head for the exits if a stock is expected to face headwinds for days, weeks, or months. Investors can step in and buy at these times, assuming the fundamentals are intact, with confidence that the firm will perform well over years. Thus the source of undervaluation would seem to be the impatience of a larger pool of short term traders versus a smaller pool of confident long term investors, leading to depressed prices. Heh?
Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? [View article]
Chuck:
I think a "universal" thank you would be fine. However, I disagree that your individual thank you to each compliment is somehow bad manners. In my opinion, seeing an SA legend like you answering every compliment with a heart felt thank is a personal favorite of mine, and shows a lot of class. Many authors don't even bother to respond to comments and questions, much less compliments. The fact that you do Chuck, shows incredibly good manners, and a personal touch rare in this day and age. While it may seem a small thing, I'll bet, like me, many of your readers find that personal connection to you pretty valuable :-)
That's right RAS, and silver. @conkjc - Robert is exactly right. When paper currencies cease to be viable, and this happens all the time in this world, economies quickly revert to a stable form of currency, and gold/silver has played this role repeatedly throughout history. You can trade your salt, farm produce, goats, coffee, whatever for currency, then go buy what you need.
Or, you can put a little insurance away now by buying physical gold/silver, and also buy what you need if the occasion should ever arise.
I would not recommend this to most folks trying to get a handle on their finances, but would for those with the means to do so.
I think you're missing the point that UOM is making, and it's a good one. He's not arguing with you that KO and WFC are better investments than gold. Physical gold/silver serve as an insurance policy. You can say, as many do, that if our paper currency loses it's value, than "I think this country and the rest of the world will have bigger problems to worry about." You're right, we will have big problems. However, having some currency on hand to pay for goods and services won't be one of them for folks with the foresight to buy a little "insurance" in the form of physical metal. Is it really that hard for you to imagine a continued decline in the value of our paper dollars?
I think of gold/silver just like term life insurance or health insurance; I try to allocate a small chunk of money every month to buy a little of this insurance. And the really nice thing about it, unlike my life and health insurance, is that once purchased, I will always own it, and can readily pass it along to my wife and children. Further, it never "expires" and can be used for any expense.
To me, everyone that invests should own some amount of physical gold and silver. Yes it just sits there, much like an insurance policy, but it never expires, and can be passed along forever.
Put Yourself In A Position To Welcome A Stock Market Correction [View article]
Tim:
Thanks for the article, good read.
I'm curious, how do you balance "readiness to pounce" on big corrections with lost returns from holding cash and trying to time the market? I wonder what's more likely; loosing money waiting for a correction by holding cash, or correctly identifying a correction, deploying cash you were holding at the right time, and ending up with a better total return in the long run? Its certainly not obvious to me.
Good plan DD. I also own WAG, WMT, and FDO. I like FDO for the long haul, but it doesn't meet your 2% minimum yield ;-( 1.7%, but growing nicely every year!
How Investing For The Long Term Helps Reduce Market Risk [View article]
Would be a very inexpensive show to produce; record one hour, then replay it every week, since nothing would change. Kinda like the weather report here in San Diego ;-)
Before You Sell Your Blue-Chip Dividend Stock ... [View article]
Nathan:
I totally agree. It's like counting cards in blackjack; I once learned how to do this, memorized the basic strategy, and found I could eek out a small increase in my probability of success. However, it was a lot of work, and made gambling a job vs. fun, so I stopped, and started drinking beer with my friends instead of H2O!
Never Average Down? You Make The Call. [View instapost]
If you've written that article, or when you do, please send it my way as well. I'm long CMI, DE and ADM.
I've been out of the loop lately, trying to keep my company alive; nice to read you Paul, and nice to see a note from Grox01 as well.
Best,
Chump
Strategies For Dealing With A Possible Market Meltdown [View article]
This comment from the article "If you're right and the market corrects, will you go back in or will the fear that drove you out keep you from getting back in?" asks an excellent question. I suspect most folks would re-enter slowly and miss out on some nice stock price rebounds. It's tough to go all cash, accurately "call" the bottom, then go all in. Very tough.
I'm following the advice of Chuck's recent article, and simply watching my individual holdings for "dangerous" levels of overvaluation. None so far.
Chump
How Investing For The Long Term Helps Reduce Market Risk [View article]
Thinking about your comment and valuation, it seems to me that time horizon is the key. Traders head for the exits if a stock is expected to face headwinds for days, weeks, or months. Investors can step in and buy at these times, assuming the fundamentals are intact, with confidence that the firm will perform well over years. Thus the source of undervaluation would seem to be the impatience of a larger pool of short term traders versus a smaller pool of confident long term investors, leading to depressed prices. Heh?
Chump
Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? [View article]
I think a "universal" thank you would be fine. However, I disagree that your individual thank you to each compliment is somehow bad manners. In my opinion, seeing an SA legend like you answering every compliment with a heart felt thank is a personal favorite of mine, and shows a lot of class. Many authors don't even bother to respond to comments and questions, much less compliments. The fact that you do Chuck, shows incredibly good manners, and a personal touch rare in this day and age. While it may seem a small thing, I'll bet, like me, many of your readers find that personal connection to you pretty valuable :-)
My $0.02,
Chump
The Dividend Advantage Over Gold [View article]
Or, you can put a little insurance away now by buying physical gold/silver, and also buy what you need if the occasion should ever arise.
I would not recommend this to most folks trying to get a handle on their finances, but would for those with the means to do so.
The Dividend Advantage Over Gold [View article]
I think you're missing the point that UOM is making, and it's a good one. He's not arguing with you that KO and WFC are better investments than gold. Physical gold/silver serve as an insurance policy. You can say, as many do, that if our paper currency loses it's value, than "I think this country and the rest of the world will have bigger problems to worry about." You're right, we will have big problems. However, having some currency on hand to pay for goods and services won't be one of them for folks with the foresight to buy a little "insurance" in the form of physical metal. Is it really that hard for you to imagine a continued decline in the value of our paper dollars?
I think of gold/silver just like term life insurance or health insurance; I try to allocate a small chunk of money every month to buy a little of this insurance. And the really nice thing about it, unlike my life and health insurance, is that once purchased, I will always own it, and can readily pass it along to my wife and children. Further, it never "expires" and can be used for any expense.
The Dividend Advantage Over Gold [View article]
Put Yourself In A Position To Welcome A Stock Market Correction [View article]
Thanks for the article, good read.
I'm curious, how do you balance "readiness to pounce" on big corrections with lost returns from holding cash and trying to time the market? I wonder what's more likely; loosing money waiting for a correction by holding cash, or correctly identifying a correction, deploying cash you were holding at the right time, and ending up with a better total return in the long run? Its certainly not obvious to me.
Best,
Chump
My Investment Criteria [View instapost]
Chump
How Investing For The Long Term Helps Reduce Market Risk [View article]
How Investing For The Long Term Helps Reduce Market Risk [View article]
Chump
A Dividend Growth Portfolio For Bull And Bear Markets [View instapost]
My full IRA portfolio is here: http://bit.ly/111s6tN
Thanks for sharing your portfolio, I enjoy your comments DD.
Best,
Chump
Before You Sell Your Blue-Chip Dividend Stock ... [View article]
Chump
Before You Sell Your Blue-Chip Dividend Stock ... [View article]
Before You Sell Your Blue-Chip Dividend Stock ... [View article]
I totally agree. It's like counting cards in blackjack; I once learned how to do this, memorized the basic strategy, and found I could eek out a small increase in my probability of success. However, it was a lot of work, and made gambling a job vs. fun, so I stopped, and started drinking beer with my friends instead of H2O!
Chump