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Many people are selling stocks like there's no tomorrow. I've seen friends glued to Bloomburg, their eyes pinned open like Malcolm in A Clockwork Orange, grating their teeth.
'I just can't believe what's happening in the markets. This is weird' he said to me.
'What's so strange about it?' I replied.
He rubbed his red, puffy eyes with the back of his hand and said, 'Who knew there would be a crash?'
I walked away from this conversation scratching my head, his words echoing in my head.
'Who knew...? Who knew...? Who knew...?
Well, that's just it, isn't it? No one knows and if you think this way, you shouldn't be investing in stocks. If your mindset shifts to rhetorical questions, especially those of a defensive kind, then keep your hard-earned cash in a money market fund.
What I find weird is that the books, websites and blogs we read, the podcasts we listen to and posts we write are littered with historical data about this crash and that correction. It's doesn't take a genius to work out that after such a long period of time without severe market turbulence that some was on the way.
That's life my friend, warts and all.
Personally, I see this time as an opportunity as a dividend investor. I'm more than happy to let the markets tumble and pick up some bargains. Why pull your hair out and freak? The current corrections are as natural as water evaporating, forming into clouds and then falling as rain. It's the way it goes. Full stop.
My investing horizon is super-long term, so I will continue to reinvest my dividends no matter what the market is doing. If it's down, sweet. If it's not, cool. I'll continue to grow my dividend paying portfolio rain or shine.
Don't sweat it people. Invest in decent companies while there's some value to be had and sleep soundly with this in mind.