Thursday, November 21, 2013


While I'm always pleased to see the balance in my investment accounts increase for any reason, I have to question whether the recent record setting stock market increases can continue.  It's entirely possible I suppose, but from past experience I'd say it's highly unlikely.  

As I've said before, my goal is to increase dividend income every month, so ups and downs in the stock market are not my main focus.  I wrote in a previous post that now might be a good time to build a cash position, which would make it much easier to go bargain hunting if or when the market turns in a downward direction.  For now I plan to continue dollar cost averaging and reinvesting dividends to build my current positions.  I realize this may mean that I'll pay higher prices for stocks I could buy at cheaper prices should the market decline, but my main goal is to increase monthly cash flow through increased dividends.  Should the cost of doing so become too extreme, then I may decide to park cash investments in interest bearing accounts and invest dividends only.  I'm taking a wait and see approach.  I love a bargain, whether it's saving money at the grocery store or finding value in a depreciated stock.  While it's always possible to find undervalued stocks in any market, since I'm not adding any new stocks to my portfolio any time soon, I have to keep an eye on the prices and make sure I'm deploying cash investments where they're most likely to appreciate.

Collected dividends from NYCB and PSEC this past week.  It was great to see increased dividend payments from reinvested dividends.  The magic of compounding is truly amazing to behold.  Can't wait for next month, when I should collect 22 dividend and capital gains payments!  That will be a nice boost to my account for Christmas.

Pickles and I are on the move once again.  The building where we live has sold and we had to find new digs on short notice.  I've located a decent and affordable one bedroom apartment on the fringes of not so nice a neighborhood, but I think we'll be just fine.  Only drawback is no washer/dryer hookups.  Can't have everything.

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