Friday, October 30, 2020

Stock Market Falling: Has Some Masked Bandit Stole My Cash?

 The end of October 2020 is here. Some of you may be feeling a little low. As though a masked bandit has run away with your cash.

William in Guide dogs for the blind face mask and red baseball cap

But don't feel too bad. If you like me have been investing for years, you are not that badly hit by the last few days sell off.

If you began investing about one year ago, then you might just have broke even for the year. Or you may have a small loss if you went with only Dow components in your portfolio.

If you invested on March 23rd. Well you are probably happy.

Don't fixate on where your portfolio was in September. Even I am down about $6,000 in my whole portfolio.   Even with that loss my total portfolio is 23.4% above its low back on March 23rd. I am up 18.75% annualized over the past two years. That is going back to when my E*Trade account was moved over from Share Builder.

As is often said, it is all relative. I can look back one month to where my portfolios were at an all time high, and feel the pain or look back two years or seven months and see where I have come from the low days.

The Simple Path to wealth book amazon affiliate linkWhat do you think all the investment sales people do. Yes they pick weeks like this and at the appropriate time even today will appear on a growth chart and they will say.

"If you bought on October 30th 2020. You would have gained xxx%"  No they won't mention the highs of September, and we investors will all say "Wow! Why didn't invest then? I would be so much richer!"

I have been there and done that. So many, many times. It's not funny. But I just plod on. Putting in spare cash here and there. Re-investing my dividends.

Speaking of which. Today sees me with a nice dividend payout of about $50. Since it is all DRIP I will be getting some stocks at a nice sale price. See falls in the market can be good. When the market falls I can get more shares. 


That is why I like dividend investing.

A little word on Apple stock:

 I know  Much is being said about the reasons why Apple stock is falling after the results were published yesterday. 

Take the fall in price with a huge pinch of salt.  Apple Always falls on results.

I have invested in Apple since 2006, and I still own quite a few shares. I have only know three times in 14 years where Apple results have seen the stock rises immediately. Two of those were stock split announcements. Apple pundits always find a reason, low iPhone sales, no future notes on sales of X product, uncertainty.


The thing is Apple makes good products, people want good products and people buy Apple products. Plus Apple now has intangible businesses, cloud storage, Apple TV, and Music as well as the App store.


If Apple goes below $100, it could, it has in the past. I will buy, even in its current $100- $115 range it is tempting.


I hope you all have a fun Halloween. Those of you in the U.K. celebrating Bonfire Night on November 5th. Have a great evening.


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