Thursday, May 11, 2023

Investing and Volatility

If you want no volatility in your investments, that is you want your investments to increase only steadily, then you should invest in GICs or Savings Accounts. Both trust companies and Credit Unions give higher interest rates than banks. You may lose spending power to inflation, but that is the cost of this sort of investing.

If you are interested in investing with some volatility so you keep and increase your spending power, you are better off using the stock market. I prefer individual stocks, but other prefer ETF (Exchange Trading Funds) or Mutual Funds. ETFs or Mutual funds can follow an index or give you basket of certain types of stocks, like only the aristocrats. That is not a bad choice, but I prefer to buy a part of a company.

When investing, you need to ignore the volatility and trust that you have invested in good stocks. I have been thought a lot of bear markets. In bear markets, always some of my stocks do badly and some cut or suspend their dividends. However, other companies keep their dividends flat and some even increase their dividends. In all the years I have invested, my overall dividends have gone up.

Yes, you will make some mistakes. Also, sometimes a once good company will take a bad turn. When that happens to me, I take a serious look at the company. I have given up on some companies because I do not see any recovery anytime soon. Other companies, I have held on to because I think problems are temporary and mostly this has worked out well for me.

You make the best decision that you can. Sometimes you will make mistakes. The thing is to learn from your mistakes. So, you have a basket of stocks and one turns out to be a dud. So, what. Do not forget you only can lose your invested money on a stock. The sky is the limit on what you can gain on any stock.

On my other blog I wrote yesterday about Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more. Next, I will write about McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more on Friday, May 12, 2023 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.

See my site for an index to these" target="_top">blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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