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 2018 10% correction. I made so much money in 2018 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.
Wah thanks i didnt know about this govt shutdown and how they would correlate to the stock market. Im assuming credits and liquidity on the line. Think we probably see something during Trump times.
The market behaved very differently than what analysts expected. They thought Trump was unpreditable vs Hillary is pro-wall street. Turned out, it didn’t matter, they turned around and said “Trump is good for business”. Stock jumped from 18,000 to 22,000. So, in the end this is just correlation, I have this cash on hand and I’ll wait like a shark lurking in the sand for a quick down market. LOL 🙂
That is a lot of money. I think you are more then capable of choosing a diversified basket of dividend stocks. You could also take a larger gamble and do something with cryptocoins.
cryptocoins, crypto currency is super volatile, remember this is my emergency savings. I don’t want to bet on a volatile stuff. I’d like a “sure win” LOL 🙂 only if it go down super quickly that I would dump my money in there, if not I’ll just sit on this cash as it’s for emergency reasons.
Yes 10-15% correction could happen on the back of Govt shutdown and potential credit downgrade. Fitch has already warned about the downgrade.
Regarding National Parks, some parks may allow free admission if they have no one to take tickets 🙂 when we were in Zion and Bryce, after 5pm they would just leave the gates open and anyone can enter for free.
Interesting information. In the past, Government employees received retroactive pay during shutdowns. If Trump and Congress were to continue this process I would expect historical data to prevail. But who knows if this would be the case this time. Also, historic data shows a drop in the dollar leading into a shutdown. But since the USD has been dropping all year I’m not sure this is a good indicator either. I think either way requires being positioned prior to the event rather than jumping in if it occurs. Unless, of course, it triggers a correction. In that case, military spending probably is the most bi-partisan.
Thanks for the DivHut mention. It will be interesting to see you dip your toe back into the tech space. I guess it will be more AAPL for you? We are all waiting for that market collapse. In the meantime keep investing!