I know that many people believe that a bear market is coming because we are overdue for one. That much is true. However, the advice to sell off your stock is absolute nonsense. No one knows when the next bear market will come. It may happen tomorrow, but it may not happen for a few more years.
Do you really want an investment portfolio that does not make money for years? If you sell, you will also have to pay taxes. And, even worse are the people who sell at the bottom of the bear market. They will destroy most of their savings to no avail.
I buy and hold. I only sell at the bottom of a bear market to buy something else. The transaction cost is less when to sell and buy at bear market bottoms. Of course, you do not know when the bottom actually occurs, but if the stocks I want to sell and buy go down a lot, I go for it.
I have a portfolio full of good dividend paying stocks. I lost portfolio value in each of the last two bear markets, but I recovered from them and my dividends went up during these bear markets. I will try to put together some figures in a future post.
On my other blog I wrote yesterday about Barclays PLC ADR (LSE-BARC, NYSE:-BCS)... learn more. Tomorrow, I will write about Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA)... learn more on Friday. April 22, 2016 date around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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