It’s a valid concern…
In my view, chaos has been the primary state of affairs recently. There’s no telling how and when things calm down. So what is a person to do?
There are multiple paths one could take.
One path leads to embracing the chaos and attempting to profit from the wild swings. This path would include taking on cryptocurrencies, for example.
Another path leads to eschewing participation and readying oneself for impending disaster. This path would include prepping for food shortages, for example.
Yet another path is the one I’ve taken. This is my continue my investments plan.
As readers of this blog know, I am a big fan of dividends and dividend reinvestment.
Why
Dividends are a stable way to receive income. While many buy stock in the hopes it will go up so they could later sell at a profit, I buy stock to receive income. With dividend reinvestment, my share count and income increase automatically. And dividends are much more stable than stock prices.
With this in mind, I have been investing and reinvesting my dividends for years. And I plan to continue. While chaos abounds around us, I do not plan to turn off my dividend reinvestments.
What I have done is to slow or stop taking new positions. I believe that in the current environment, it is best for me to follow two goals: continue my dividend reinvestments, and conserve cash,
Why No Cryptocurrencies?
In my view, cryptocurrencies are the beanie babies of the investment world. Like labubus, fancy and popular at the moment, but eventually the fad will either fade, or enough people will be defrauded and it will all grind to a halt. Some may make profit as we speak, but the long term prognosis is horrible. Reviewing Sir Isaac Newton’s loss in the South Sea Bubble would be instructive.
Meanwhile…
Maintaining my dividend reinvestments has the added benefit of helping me focus attention on things other than politics. Given the current state of politics in the U.S. is so dire, it is a balm to have other things to think about. Gardening is another.
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