The average is -0.6%. After that you’ll always see a nice rebound. For that, BUYing during the shutdown is great timing, if it comes!
Yep! This is the correction we’ve been waiting for since September 2015 10% correction. I made so much money in 2015 buying Canadian banks, US Bank, US manufacturer companies, LOL it was a party!!!
Since then, Congress has behaved, and raise the debt ceiling on time, in time to avoid any chance of the stock market collapsing. Hence, we’ve been seeing the DOW went from 15000 to 22000 today (well it’s gone down to 21000 of late, but still, you get my point).
I’m not an expert, but I’ve been saving cash diligently since I spent all the cash last year buying 2 properties which you’ve seen the significant jump in passive income that I’ve been taking in each month. Now, that I have $50K on hand (this is for emergency, but if the market collapse, I don’t mind unloading all of this into the market to take advantage of the bounce back).
Why I think this is happening? Well, don’t take my words, just take the words of professional investors. As this one article is saying Goldman Sachs analysts think there is a 50-50% chance of the Government Shutdown. That usually doesn’t go well with the stock market as it’d affect the US credit ratings.
In the Arizona Rally, Trump make a threat for the government shutdown if they don’t spend money on the WALL (US-Mexico border wall). Trump is super vain, I wouldn’t take his words lightly. But vain or not he IS a businessman, and he’s been sitting on this BIG pile of cash since the election. His family has been dumping tangible assets for CASH (All $600 Millions). They are ready to BUY BUY BUY. No joke!
So what I’d like to buy? Well, that depends.
DivHut wrote an article about tech sector. It’s been doing very well, so I don’t mind dipping my toe back in. I used to own 700 apple shares, dumped it for the 4-plex.
Dividend Diplomats bought some GWW and other retail stocks. It would be a great buying opportunity as retails might do well during the Holidays as people tend to shop more.
I like the banking sectors, I might get some more healthcare stock, more high yield REITs if they dipped a lot lower.
I’ll consider getting back into Utilities and Energy Sector, although Oil and Gas price might stay low for another couple of years. I don’t mind the 3-5% in dividend payout XOM, BP, CVX, D.
Have any suggestion on how to spend $50,000 on the dip? Please let me know in the comment section below.