From Pain to Gain

Buying stocks in January and February this year has been slightly less painful than sticking a pin in my eye.  I was implementing my strategy of buying good companies whose stock had higher paying dividends.  However, I was continually punished as my purchases sunk further for several more weeks.   Near the bottom, with my confidences waning, I stopped making additional purchases.

When the pain to too great and I stop buying, the market usually bottoms and reverses itself.   So now I am enjoying some good gains as the market rallies.   In fact, I sometimes think I should have bought more, but I know better.   Placing more funds in equities would have put me above my threshold of financial pain.  

I still believe this rally is of the bear market kind, a respite from the selling pressure.   So I continue to use the opportunity to take some profits and lock in some gains.

Because I expect the pain will return shortly.

For more on Reflections and Musings, check back Saturday for a new segment.

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

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