Monday, August 24, 2015
Its A Fire Sale!
Could this be the start of another recession? Who knows, in reality no one does, but one day in the future we will be able to look back and see. Perhaps this event will just be tied in with the 2008 decline; starting some sort of economic crisis period. Maybe not, it could be this dip precludes an era of industry we've not seen in twenty years. Possibly historians will determine that this point in history has proven that economic cycles are moving faster due to technology, meaning that the business cycle is not a long wave any more, but rather more fast moving and complex. One thing is for certain is we do not know how tomorrow will unfold.
We may not know what the future holds, but we can certainly take advantage of the now. It is my firm belief that time in the market is more important than timing the market. I am not the only person who thinks this; if you scan sites such as The Dividend Growth Investor or Dividend Mantra you will see this being spoken of and playing out in real time. In fact, Dividend Mantra currently has an article up on the topic at the moment. The timing could not be more apt!
That being said, if you do find yourself with a nice set of entry or cost averaging points, get excited! In the long run it is time in the market, but every extra percentage you bring in with your dollars now will save you that much more in the future. So the question is now what am I looking for in this mini correction?
If I had a lot more capital I'd be drooling, but at the moment I am caught between a few things including waiting for my wife to start her new kick-ass job. So currently I am shouldering our lives, but that is not to say I am not going to seize the day. Once her job is rolling things will be much easier. My interests are targeted to my Loyal3 taxable account. A massive share sell off would finally make a lot of those stocks favorably priced. My current holdings (rapid fire) are: AAPL, DIS, DPS, HSY, K, KO, MCD, MSFT, PEP, TGT, UL, VFC, and WMT. Of those listed only TGT and VFC are not currently of interest to me; this is due to TGT being a strong enough position at the moment and to VFC needing to drop further in price. Outside of that my positions in AAPL, KO, MSFT, and UL are large, but may see minor additions.
Going forward I am looking to deploy some capital into DIS, DPS, HSY, (kind of) K, MCD, PEP, and WMT on weakness. DIS, HSY, PEP, and WMT lead the charts. I might select only a few of the companies or spread around a small amount of capital in each, which is feasible with Loyal3's fee free status.
What will you do? If I had more capital I would actually be targeting big industrial, financial and energy companies that are getting torched. Not only are they getting burnt, it appears to more of a guilty by association reasoning. Possibly some people are over reacting and going cash heavy, with the expectancy for a real collapse on the horizon. Either way, these are the kind of moments that only happen so often and are worthy of action.
What do you plan to do in the market?
- Long all stock symbols mentioned.