Some days I buy, most days I don’t. What am I waiting for?
While I keep an eye on the markets on most days, there are times I am very keen to buy something that has caught my eye. But most days I do nothing. I ascribe this “doing nothing” to waiting. So, what am I waiting for?
And Why
So then I ask myself, why do I call doing nothing “waiting”? As if doing nothing isn’t enough. Because doing nothing is enough as it is, right?
Needs and Wants
No one “needs” to buy stock. Ever. It is always a “want.” At least that is how I see it. So if buying stock is a want, why would I want to?
Initially I would reply in financial terms. Hedge against (keeping up with) inflation, aiming for future growth, looking for income, and so on. All of these are valid and correct answers.
But other motivations come into play as well. Growing one’s net worth. Increasing one’s assets. Also valid.
But there are psychological motivations as well. Knowing that I own a chunk of equities adds to a sense of security, even though these are considered risk assets.
It helps to not feel totally dependent on a single employer. (Obviated since I retired, nonetheless.) It also allows me a sense of distance from immediate crisis from the fear of loss when hearing about financial woes. I know I have my dividend income to fall back on should major reversals occur.
There were times when I was forceful in growing my assets by buying frequently. At other times, like now, I only purchase when a company appears to be undervalued. And even in such a case, I frequently hold back and let things slide. I greatly appreciate cash in the bank. I would never allow myself to be 100% invested in stock.
Now and Then
With inflation and interest rates now elevated compared to recent years, I have the opportunity to seek interest rates in CDs and money market accounts that rival if not surpass my dividend income yields. These all comprise “cash in the bank” in my view. The interest income I receive is as important as dividend income.
I feel fortunate that I don’t feel a compulsion to buy-and-sell. Day trader I am not and will never be. If someone can make a consistent living at day trading, more power to them, but that is not me. Some of my waiting is for waiting for opportunities. But most of my time is simply being who I am, living life, and occasionaly paying attention to the market.
So my “waiting” is also being productive, A waiting is also a doing. By doing nothing else, the stock that I own pump out dividends quarterly, a CD or money market account delivers its interest periodically. Neither forms are static. I don’t hide anything under my mattress. I will buy when I am moved to do so. Sometimes I am not. “They also serve who only stand and wait.”
Are you waiting, or are you impelled to do someting? Let me know here.
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