Thursday, August 20, 2015


The stock market dropped this morning following the latest actions from the Federal Reserve.  I've been holding  back on new share purchases in case of such an eventuality.  

If share prices go down, stock yields rise making new investments in out of pocket cash more profitable.  If I had invested the cash I put back for new share purchases yesterday, I could have increased monthly cash flow by 3%.  If I invested that same amount today, monthly cash flow would increase by 4%, since I would be able to purchase more shares now that prices have dropped.  

However, I'm going to wait a while longer.  I'll keep reinvesting dividends, but I'll hold on to my cash to get a bigger bang for my buck.  I don't think the turmoil in the stock market is going to be over anytime soon and I'm willing to bet that I can find a better buying opportunity.  Of course, since building my portfolio is an ongoing process, I'm not trying to wait on it hitting the bottom, I'm only trying to get a better deal than I would now.  The main goal is to boost monthly cash flow.  A down market makes it easier to buy more shares with higher yields boosting monthly income at a faster rate.

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