More than Ever, Stay Invested
I repeat that all the time, but if 2021 taught us anything, it’s that nobody knows how the market will react. Those still waiting on the sidelines are now banging their head against the wall. After all, you may have been waiting for a market crash, but the more it goes up, the fewer chances you will have to pick bargains. Yes, stocks’ prices will drop at one point or another, but they may never go back to their 2020 value. Here’s a quick guide on how you can start investing your liquidity:
- Identify sectors you want to invest in (review each sector’s strength).
- Build a buy list using our Mike’s Buy List, this newsletter, and our stock screener.
- Invest 1/3 of your money now.
- Wait another quarter to get more information on each company and read their next quarterly earnings. This will also protect your money if there is a market crash in the next three months.
- Wait another quarter to invest the rest of your money (same rationale as step #4).
In general, market crashes will drop for 3-6 months before going sideways. By waiting 3 months and another 3 months to invest your money, you will average down your position if we hit a market crash in the coming months. On the other hand, if we don’t suffer that crash, you will have money riding the market creating a cushion for the next crash.
Find out about 6 companies that will crush 2022
Each year, I compile a list of stocks that are expected to do better than the market for Dividend Stocks Rock members. This year, I’ve reviewed the 11 sectors for them and included top picks for each. I’ve decided to share two of them with you: REITs and Utility.
You can download 6 of my top 22 for 2022 right here:
If you didn’t listen to it yet, here’s our Podcast Episode including 6 other stock picks ideas for 2022. Combined with the booklet, you’ll have plenty of great dividend growers to dig into in order to surf the year and stay invested.
