US Households To Sell $100 Billion In Stocks, Goldman Says
Time and again over the course of what's destined to be remembered as one of the single worst years for financial assets in modern history, analysts have noted the conspicuous absence of capitulation from "retail" investors.
This is a somewhat ambiguous discussion given there's no universally agreed definition of a "retail" investor. That term could mean virtually anything. When it's applied derisively it's often a reference to the Robinhood crowd or sundry "unsophisticated" homegamers dabbling
For those of us that are dividend investors spread over say 30 to 50 stocks, baby bonds, ETFs etc. as the prices go down the yields go up. So far, the dividends just keep coming. Do we keep on reinvesting the dividends to take advantage of the higher yields or sell and be stuck with FOMO?
Eventually the market will turn around. We haven’t missed any meals yet so not panicking.
For the last 15 years I have reinvested 50-75% of my investment earnings in total. I do donate a third of my income annually, but the rest goes back in the market. I’m having my worst year in a couple decades but my investment income is steadily rising, up nearly 10% YoY. Losses are only losses when you realize them by selling. I rarely sell. My plan now is to follow the behavior of the fixed income market. As rates rise I buy new stuff at higher rates and old stuff that has gone down. Nice how this works. First time in several years there has been a supply of discounted bonds. I’m drooling.
]Same strategy here. I’m invested in what I feel are good investments & dividend payers. As the dividends have been rolling in, I’ve been adding to my positions at bargain prices. Sell now? I don’t think so-I’ll hold on, continue collecting my dividends and wait for the market to turn around.