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.
Copyright © 2016 Achievement Catalyst, LLC
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