WILL THERE BE A MARKET CORRECTION?

There has been a lot of speculation of late about a correction in the stock market. Will the market correct in the near future? I really couldn't say, one way or another, with any degree of certainty. But one thing I do know for sure is, money that is not working has no chance at all to build additional wealth. That is why I like to keep my money working all the time. Once I've earned a dollar, it goes right to work. My paychecks are deposited into interest bearing accounts. Even the money I use to pay my bills are drawn from an interest on checking account, so I'm able to earn interest on the money until the payments clear the bank. My dividends that I recieve in cash are paid directly to my money market account, so they go right to work earning interest.

I read somewhere that one of the main reasons John D. Rockefeller was so successful in business was that he always maintained a large "war chest" of cash. In keeping with my philosophy of doing what the rich do to build your wealth, I've been increasing my own cash positions. Of course I maintain the cash in interest bearing money market, checking and savings accounts and while interest rates are extremely low right now, the cash is still working and earning even more money.

I've been sticking with my plan to cut investment costs by re-investing dividends to purchase more shares, thus avoiding commissions since there are no commissions on re-invested dividends. I did purchase some additional shares in BPT to take advantage of their great dividend payout. I'm also working on increasing my stake in Astrazeneca for my IRA account. They have fantastic earnings, a great dividend payout and a good deal of cash per share. I figure it can't hurt to own a few more of their shares.

At any rate, if and when we do see another correction in the stock market, I intend to be in a better position to take advantage of the lower prices and load up on more quality stocks for my investment accounts. I plan to follow Rockefeller's example and have a "war chest" of cash to take advantage of investment opportunities as they present themselves.