Given the state of heightened volatility and fear that has been rampant in the stock market so far in 2016, I'd like to outline the 7 steps that I use to maintain/increase my net income (and I don't use the word "net" lightly - as like it is in business, it's not what you earn, but what you keep). These steps (as well as my investing experience) keep me from tossing and turning each night worrying about today's, tomorrow's or the short-term stock market's spiral downward. For simplicity, I am excluding a discussion of taxes, but always remember that the government will rarely keep its hands out of your pockets if they see you making money. Please keep that in mind.
These are my 7 Steps to SWAN. I am comfortable following them and they are the foundation I have in my dividend growth investment plan. Many of SA's investors are relatively new to the stock market (I define that as within the last 10 years), but I strongly remember Monday, October 19, 1987, and keep it in mind whenever Armageddon seems that it's upon us. In retrospect, I would have loved to have been fully committed to the stock market on Friday, October 16, 1987. It's all about your investment time horizon perspective. What was sickening beyond belief at 4 PM on 10/19/87 (and trust me, sickening doesn't even describe it) is bliss on 2/11/16! It's not that I believe a 30-year time horizon should be the norm for comparison, but a successful investor needs perspective in order to make decisions based on fundamentals and analysis and not allow fear to dictate those decisions. With perspective and experience comes some wisdom (hopefully) and the ability not to succumb to fear.
What are your steps to investing during times like these? The SA comment stream is probably the best way to learn about investing. It's amazing how many investors are willing to offer up brilliant nuggets from which to learn.
If you feel that anything I've offered up here is valuable, please follow me by clicking above. I am always honored that an investor sees value in the things I've learned over my decades investing.
Good luck to all!
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Disclosure: I am/we are long HCP, BA, CVS, BAC, BX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.