Money and Finance
Today I was reading Dividend Mantra's post titled "What are you buying?" , well unfortunately I'm not buying anything right now although there's still some values available it's definitely not like it was the last quarter of 2011. The Stoic commented "There are several companies that I would like to add to my portfolio to better diversify, but just can't justify today's prices compared to just four months ago. This is my biggest challenge these days: if entry price matters or if DCA would be the best approach." This is very much the position that I would be in was I actively investing right now versus investing in my debt payoff.
I think the best course of action now would be to do both, DCA and get the entry price you want. As long as your monthly investment amount is high enough I think it would be prudent to blend the two by taking half of your amount and DCA into whatever position is the best value at the time or underweight in your portfolio. I would then build up cash with the other half. My reasoning behind this is that even though the markets have made a historic run and the consensus is that we're due for a pullback, or at the very least a cooling off period of flat trading, that you just never know what the markets and investor sentiment in general is going to do.
Due to the general lack of across the board value I think this could work out. If the markets continue to shoot higher then you're still adding to your positions and getting lower entry prices while building up some cash for the day when a pullback does come.
Personally I hope the "Sell in May and go away" rears its head again this year.
- Recent Buy
This morning I purchased 40 shares of Target (TGT) for a price of $61.81 per share. With the current dividend payment of $1.44 I was able to pick up the shares for a 2.32% YOC. I've been following Target for a while and the price just never quite...
- Dividend Update - August 2012
August was a slow month for dividends with only 2 companies paying out during the month. I'm looking forward to September rolling around when I will have the majority of my portfolio paying out for my largest monthly payout so far. I'm still...
- Patience
In the investing world of today, waiting for the right price doesn't take too terribly long. This is something that I need to remember as I'm currently sitting on a 25% and 21% cash position in my brokerage account and my Roth IRA respectively....
- Position Decision
I'm a little torn on what to do with my small position in Walmart (WMT). I originally purchased the shares back in late April after the Mexico bribery scandal became news. At the time Walmart had dropped a lot over a few short days and I was able...
- The Intelligent Investor
I've started reading Benjamin Graham's book "The Intelligent Investor" and have been amazed by some of the insights that he had. I'll be starting a new series referencing Mr. Graham and help to share and reinforce his knowledge to everyone...
Money and Finance
Holding out for a pullback?
Today I was reading Dividend Mantra's post titled "What are you buying?" , well unfortunately I'm not buying anything right now although there's still some values available it's definitely not like it was the last quarter of 2011. The Stoic commented "There are several companies that I would like to add to my portfolio to better diversify, but just can't justify today's prices compared to just four months ago. This is my biggest challenge these days: if entry price matters or if DCA would be the best approach." This is very much the position that I would be in was I actively investing right now versus investing in my debt payoff.
I think the best course of action now would be to do both, DCA and get the entry price you want. As long as your monthly investment amount is high enough I think it would be prudent to blend the two by taking half of your amount and DCA into whatever position is the best value at the time or underweight in your portfolio. I would then build up cash with the other half. My reasoning behind this is that even though the markets have made a historic run and the consensus is that we're due for a pullback, or at the very least a cooling off period of flat trading, that you just never know what the markets and investor sentiment in general is going to do.
Due to the general lack of across the board value I think this could work out. If the markets continue to shoot higher then you're still adding to your positions and getting lower entry prices while building up some cash for the day when a pullback does come.
Personally I hope the "Sell in May and go away" rears its head again this year.
- Recent Buy
This morning I purchased 40 shares of Target (TGT) for a price of $61.81 per share. With the current dividend payment of $1.44 I was able to pick up the shares for a 2.32% YOC. I've been following Target for a while and the price just never quite...
- Dividend Update - August 2012
August was a slow month for dividends with only 2 companies paying out during the month. I'm looking forward to September rolling around when I will have the majority of my portfolio paying out for my largest monthly payout so far. I'm still...
- Patience
In the investing world of today, waiting for the right price doesn't take too terribly long. This is something that I need to remember as I'm currently sitting on a 25% and 21% cash position in my brokerage account and my Roth IRA respectively....
- Position Decision
I'm a little torn on what to do with my small position in Walmart (WMT). I originally purchased the shares back in late April after the Mexico bribery scandal became news. At the time Walmart had dropped a lot over a few short days and I was able...
- The Intelligent Investor
I've started reading Benjamin Graham's book "The Intelligent Investor" and have been amazed by some of the insights that he had. I'll be starting a new series referencing Mr. Graham and help to share and reinforce his knowledge to everyone...