Don’t think for a moment that small traders will be the only ones guilty of too much focus on the rear-view reflection. Let’s go through the behavior of skillfully managed pension money in recent years. In 1971–this was Nifty Fifty time–pension managers, sense great about the market, put more than 90% of their online cashflow into stocks, an archive commitment at the right time.
And then, in after some duration, the roofing fell in and stocks got cheaper way. So what did the pension fund managers do? They stop buying because stocks and shares got cheaper! This is actually the one thing I can never understand. To refer to an individual taste of mine, I’ll buy hamburgers the rest of my entire life.
When hamburgers go down in price, we sing the “Hallelujah Chorus” in the Buffett household. When hamburgers go up, we weep. For most people, it’s the same way with everything in life they will be buying–except stocks. When stocks go and you can get more for your money down, people can’t stand them anymore.
That sort of behavior is particularly puzzling when engaged in by pension finance managers, who by all privileges should have the longest time horizon of any traders. These managers will not need the money in their money tomorrow, year not next, nor next decade even. So they have total freedom to sit down and relax back again. Being that they are not operating using their own funds, moreover, natural greed ought not to distort their decisions. They should simply think about what makes the most sense.
Yet they act just like rank amateurs (getting paid, though, as though that they had special knowledge). Consider the circumstances in 1972, when pension fund managers were still launching up on shares: The Dow ended the year at 1020, got an average book value of 625, and earned 11% on reserve. Six years later, the Dow was 20% cheaper, its publication value acquired gained nearly 40%, and it acquired earned 13% on reserve.
Now, if you’d read that article in 1979, you would have suffered–oh, how you’ll have suffered! I was no good then at forecasting the near-term movements of stock prices, and I’m no good now. I do not have the faintest idea what the stock market can do within the next six months, year or the next, or another two. But I believe it is very easy to see what is more likely to happen over the long term.
- Selling for a profit – if you get property and later sell it at a higher price
- 76-80 5 times
- The world is currently home to at least one 1.8 billion children, the largest human population in human history
- 26 percent of 110 = 28.6 26% of 110 = 26% * 110 = 0.26 * 110 = 28.6
- 1913 – Tax founded -16th Amendment Ratified
- Roth conversions
- The various dangers faced by the business
- Convert Video to DVD
Dividend trading helps us create passive income so we can perform financial independence. In my prior article, I wrote on the advantages of dividend investing and how we can essentially get more than 10% yield on our investment. The question now would be, how do we select the right dividend stocks for successful dividend trading?
Let’s check out some criterias for dividend investing in part 2 of this series. But before we get right into it, let me demonstrate the pitfalls to stay away from the story of this once hot stock detailed on the Singapore exchange. Much like all investments, if it is done by us the wrong manner, we would lose money. This is the same for dividend trading. Not only do we get reduced dividend if we pick the wrong stocks, some shares will also totally cut out dividends. One example of such a company which performed poorly through the years is Creative Technologies.