Sunday, June 28, 2015

Looking for Extreme Market Pain

I am convinced the Greek debt crisis will create an investing opportunity.   However, whenever I've had this mindset in the past, I started investing right away and quit before the bottom because the pain was too great.   Case in point:   The May 2013 Taper Tantrum.    I started buying right away, and kept buying into the decline.  However, it took over a month for the pullback to complete.  By the bottom, I was feeling enough market pain to stop buying.

When the decline starts this time, I plan to only buy those stocks I was considering last week, but haven't purchased yet.  These stocks are dividend paying stocks and part of my strategy to create a steady source of retirement income.   After these purchases, I will wait until the stock market pain is very high (at least a 10% decline) and then start making the additional purchases.

For more on  New Beginnings, check back Sundays for a new segment.

This is not financial advice. Please consult a professional advisor.

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