by Rin ➕follow (8) 💰tip ignore
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I did like MO suggestion, are there others?
How many stocks pay 10%?
Rin is likely in Montreal seeing some hoes. Just a quick shout out.
Realize, the yield curve just went negative recently, however, there's always this lag time prior to the actual recession where a bit of that trading euphoria kicks in just like in the "Pets.com" or "That Real Estate (including REITs) Only Goes Up" eras.
"Don't sell. It's different this time.".
In fact in 2000, the top was about the same time as the graph above dived.
How much time do you think we've got Rin? Just a wild guess that I won't hold you to. Me? I'm thoroughly confused.
Heraclitusstudent saysIn fact in 2000, the top was about the same time as the graph above dived.
In 2000, there was no 'Wall of Worry'. It was pure euphoria as pundits were saying that the economy fundamentally changed and that economic downturns were a thing of the past.
Does anyone remember Pets.com?
https://en.wikipedia.org/wiki/Pets.com
Talk about bullish hysteria, almost akin to the Tulip Mania of prior centuries. By the close of 2000, Pets.com was a memory.
I think we're in the 'Wall of Worry' era where there's enough scaredy-cat sentiment, that it's not the start of the bear market.
When it happens, according to the old timers, is when ppl forget about their worries and start to think that either stocks or real estate, can only go up.
When it happens, according to the old timers, is when ppl forget about their worries and start to think that either stocks or real estate, can only go up.
The newer idea here is that yes, your blue chip stocks give you dividends but at the same time, do you want to automatically re-invested them (DRIP), when it's clear that if we're nearing the end of the bullish cycle, it's better to buy the blue chips at a discount in the future?
Realize, the yield curve just went negative recently, however, there's always this lag time prior to the actual recession where a bit of that trading euphoria kicks in just like in the "Pets.com" or "That Real Estate (including REITs) Only Goes Up" eras.
So my advisor and I have this intermediate strategy. It's called putting the aristocrat dividend flow into buying non-aristocratic stocks, whose price action has to beaten to a point, not too distinct from let's say a 2009/10 low but at the same time, can give a 8-11% dividend just for holding onto them. And then, these stocks can be DRIPed to get a decent growth for a 2-4 span prior to selling 'em off.
Here's a scenario using a cheap stock price (realize, most aristocrats/blue chips are pricey in today's market), 10% dividend yield, and passively putting extra aristocrat dividend cash into them.