Monday, April 26, 2021

Scared of Heights? Stock Market at New Highs

 Over the years, I have often been scared in the market.

William Elliott, poses for the camera, wearing a deep blue shirt and silver grey tie.

You see I don't like heights. Both in the real sense, standing near a sheer drop makes me sick, and stock market highs make me  frustrated as the number of stocks that I am willing to buy dwindle.

Now is a time when I just look at the market and weep. 

I can't really buy very much.

I am happy that my stock portfolio is increasing in value. An 11 percent rise in the S&P this year is good, one of my portfolios has increased by 10per cent, another by 12 per cent and my M1 portfolio has grown 18 percent.

See my M1 portfolio here.

If you like M1 why not open an account using the link above. When you open an account and fund it with $100 you will receive a $30 cash bonus to invest from M1. That is a 30% boost to your portfolio, straight away. Just for using my link.  I will also receive a small introductory fee from M1 at no cost to you.

The one truth that I continue to hold in my mind right now is this is a cycle. We are on the up trend. Sometime we will level out and come to a down trend.

I am not talking of a stock market crash.

The stock market will go up. Economies grow. 

Think of the wheel of a bicycle. Put a mark on the wheel rim. As the mark goes around it appears to rise and fall. The mark is the stock market. Now ride the bicycle along a road, the road may go up and down too. The road is the world economy.  If the road goes in an upward trend, then even though the mark on the wheel is going down, it will continue to go up relative to the last point on the road where it was at its lowest point.

So while it may be scary to invest in individual companies right now. I am moving to invest in mutual funds and Exchange Traded  Funds.

These stocks and funds spread the risk a little more and give me some diversification. I am going with VYM the Vanguard Dividend ETF  and PREMX the T. Rowe Price Emerging Market Fund.

Both give a decent return, monthly income from PREMX and quarterly distributions from VYM.

I believe before the end of the year we will see less of the lock step rise in individual stock prices. Stock rising and falling at varying rates across the market is more the norm. More to my liking too as individual stock volatility brings more opportunity to make more profits for us as investors.

Till that time comes. Maybe take a look at M1. It is a simple way to invest.

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