Thursday, January 7, 2016


China's stock market crash has caused global fear in the stock markets.  Every one of the stocks and funds in my portfolio are down for the day, as of this writing.  However, I'm not panicking at all.  Have I lost my mind?  No, I'm just looking at the whole thing as a great time to boost stakes in my current holdings.  

I have only a limited amount of money to invest and even with reinvested dividends, I'm only able to add so much to my portfolio each month.  When stock prices take a dive, like they have now, those additional investment dollars and reinvested dividends add several more shares.  It's the money I earn from the dividends that I'm after, stock price is almost irrelevant.  While I like to see the value of my holdings increase, several years of investment experience has taught me that it will happen over time.  So as long as you don't sell and lock in losses, you increase holdings while prices are down and concentrate more on the monthly income.  Eventually stock prices will go back up.  But in the mean time, isn't it great to get a bargain while the prices are down.

Since I'm still in the buying phase of building my investment portfolio, stock market melt downs are always good news to me.

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