Uncertainty breeds volatility, declines and “corrections” are commonplace. Are panic and capitulation in the cards?
What a roller coaster the last three months have been. I don’t expect calmness to return anytime soon.
Is There Any Good News These Days?
Spring is on its way. Despite continuing cold, weather is warming ever so slowly. So slowly, but clearly ascending. Buds and blossoms are visible. Portends of a beneficial verdancy. I need to continue to remind myself that the volatility and uncertainty we are experiencing in these months is all man made, made by ideology.
As mentioned in a previous post, I intend to keep my portfolio as is. No selling. Despite any volatility or panic, I will stay the course. Because staying invested with dividend reinvestment is for me the simplest, easiest, and most productive way to increase the shares I own.
With dividend reinvestment, each dividend issued increases the number of shares I own, which in turn increases the dividends I will receive.
But
While I will retain my dividend reinvestment stocks, and have no plans to sell anything, and will continue my dollar cost averaging, there is one thing I will hold back on for now: new investments. I believe that the volatility we have recently seen is just the tip of the iceberg. I believe more economic and financial disequilibrium is in the cards. Only some of it will come in the form of stock market gyrations.
More stock will go on sale and some interesting opportunities will arise. To take advantage of these potential opportunities, one needs cash. So being prudent with my financial assets is key to surviving the ongoing turmoil.
But there is one thing I keep in mind at all times. Things have tendency to change unexpectedly.
How are you doing nowadays? Let me know here.
The illustration is from “Book of Flower Studies” by Master of Claude de France, published in Tours, France, 1510-1515.
The post How Bloody Will It Get? Is the Sky Falling Yet?
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