The DOW is down triple digit again pushing the total market into correction territory. Instead of selling like everybody else, I’m buying.
The market I’d down due to the fear of China weakness. China is a growing market, so when the growing stop and transition into consuming more than making, producing and exporting, the world is worrying that The consumption growth will stop. Such as Chinese will buy less wine from France, less car from the US and Germany, will buy less Gucci and coco Chanel, buy less equipment from CAT, buy less apple iphone, ipad and etc.
A big piece of the news today is:
US to sanction china, if that’s is the case and the Obama signed the executive order. We don’t know the detail but the economic impact on the US businesses which are so large that it could be detrimental to the stock market. China grow at 6% instead of 7% and the world marker on fire.
Although the Chinese weakness is a real concern, I have no doubt that these stocks that I buy can even push down further or trade up a little bit then down. However, these companies are still making killing profits and continue to share a portion of the profit to the shareholder such as myself.
They faired pretty well on the last recession, and these stocks has been down 20-30% from 52 week high.
If the FED decide to raise interest rate by the tiny bit, which they probably will, I don’t think these stock can go down too much further. And if they do, I’ll buy more to average down and improve my yield on cost (YOC).
WMT – i continue to average down
DOV – new position, they develop robot arms and such, the very technology that takes jobs away from people. Side note: are they going to develop the very own technology to put their own engineer out of work? 🙂
MMM – just yesterday I had to change filters on my tenant HVAC. -$30 total. And every quarter I have to do this. At my work, boxes and boxes of materials from 3M that I see lining up on the hallways. Then they get empty, then fill up. As this cycle keeps on going, regardless of the China’s weakness, the company will continue to make money from landlord, homeowner, and hospital worker like myself. The real stock analysis can be found from DivHut here.
F- I like ford trucks. They made a mistake of stop producing small trucks. But I’m sure that can be fixed. 🙂 I learnt about F in history, Mr. Ford invented the assembly lines which all of us are using today instead of 10 people’s building 1 car, they have 100 people building thousand of cars :). Ford will prevail from the recent weakness, American will never stop innovating. No doubt!
GE – how could I not? Each dollar GE is pullback, the market drop $1 billion. Yes, GE has way too many shares. So what the CEO wants to do? Sell part of the company, then buy back the shares, drive the stock price up, start focus on the core business of GE.
Amusing reading from the web student who went to college for a year and a half, took out $124k in loan, now owe $210k at 30 yo. Why lender let him borrowed that much at 18 yo? What type of tuition he was paying? What type of lifestyle he was living? This article makes it sound like it’s a fraud. Anyhow, without co-signer and he can take out $124k is wrong. Is the student loan financial crisis coming?
This article makes me feel good being a landlord charging $337$/person for rent. My tenant is paying just under $4/yr for boarding. Tuition is $4k/yr at one of the best state school with a division 1 basketball team.
Nice going, WRI. The best time to buy is during a selloff – profit when the others are panicking!
Congrats on adding these quality names to your portfolio. Keep up the great work!
R2R
Thanks! You added a bunch of quality stocks yourself. I’ve used your list to add a few more companies. 🙂 As we speaking, the stock is 450 in red. So, why not buy to get higher yield? My paper loss can be huge, but until I sell, I haven’t lost anything. In the meanwhile I could use the dividends to add more shares. Love the votilities.
Thank you for mentioning DivHut. Always appreciate it.
No problem, Keith. I’ve been followed your blog for awhile. I really enjoy it.
Nice purchases during the dip. These are fine companies. I think DOV is also a very good price – I was happy with them Mid 60s.
D4s
Thanks for the vote of confident. I like dov too. I might add more shares if the stock pullback more. I should check out your stock analysis.
Hi Vivianne
Like you, I have been busy adding to my position delightfully during this market correction mode. I think it presents a very good entry point for long term investment and 5 to 10 years down the road, we probably don’t even remember what happen during this period.
Great addition there.
B,
Tru dat (true to that!). We won’t remember the dip. I read an article today that millennials were confident about stock until the market hit the 10% correction.
I’ve been following the news since high school, long enough to know the market will always bounce back, and the time to buy is the time when people are panic selling. People who stay in cash position too long and not have an account at all, they can’t possibly buying into the dip in time. Just last Monday, the market was down 1000 points, within 10 minutes, I can’t even unload my cash pile to buy into the dip.
Good luck to us all! 🙂
Congrats on the fresh buys!
I anticipate that the markets will go down more over the next few months and most of the stocks which you have purchased will cushion the fall with dividends. I especially like the Walmart purchase as this company will do well even in a recessionary environment i.e. you may see capital growth as well.
Even though I cannot profit instantaneously like you due to my mutual fund investments, I did get lucky on September 1st as well!! Over a couple of tries, I invested appx $1500 into VDIGX at an average of $21.50 per stock…much lower than my current portfolio average of $23.00. Yeah for dollar cost averaging! I am hoping come December payout time, this investment will bear the first of many fruits.
Best of luck in making the most of the down market!
We’re waiting for the market to fall a little more before we buy stocks. The S&P tends to make new lows after it crashes like it did on August 24.