Wednesday, August 7, 2019

PANIC OVER TRADE WAR PRESENTS BUYING OPPORTUNITY

I know it's hard to think of buying stocks when we see the kind of price drops we've seen recently, mostly due to the trade war with China and the weakening yuan.  However, as a dividend investor I'm seeing an opportunity to load up on more dividend paying stocks at much lower prices.  Simply put, each dollar I invest is buying me more dividend income than before.  So while the trade war is bad for stock market prices, it's good for dividend yields.  I plan to strike while the iron is hot and add as much new dividend income as possible.

While I mostly invest for dividends, I recently added a couple of bio-pharma stocks to my portfolio.  They are penny stocks paying no dividends but with a tremendous upside potential.  I'm hoping to make a quick profit in these and reinvest in a few more speculative stocks.  Risky yes, but the possible rewards may make it all worthwhile.  I'll let you know how it works out.