A trio of weird, but wonderful “upside-down” investment ideas in this post. Often, all you need to be an excellent investor is a healthy dose of common sense: A penny saved is a penny earned. Buy low, sell high. Don’t put all your eggs in one basket. That said, the best way to achieve these simple goals isn’t always as obvious. In fact, many of our favorite investment insights may at first seem counterintuitive.
Earning dividends aren’t the only way a stock investor can generate income. Investors often see earning dividends as a way to grow income. But dividend strategies are not the only way to produce cash, and investors should be aware of the potential tradeoffs that accompany a focus on dividends. For stockholders who own dividend-paying shares, those payments arrive on a schedule (quarterly, in many cases). The cash to fund a dividend must come from somewhere, however.
Not long ago, some investors had yet to experience what it was like to weather turbulent markets. Even those who had, might have forgotten how scary it can be. This concerned us. So, to help people practice for scary days ahead, we published a fire-drill piece: “10 Things To Do Right Now While Markets Are (Not Really) Tanking.”
The coronavirus has grabbed global headlines. As news has spread, so too has financial uncertainty. What’s going to happen next? Will it further infect our domestic or global economies? In case it does, should you try to shift your investments to remain one step ahead?
Much of what impacts your investment decisions is beyond your control. That said, you do have a big say on how much you spend on investing. By tending to the costs of your investment decisions, you can control how much you need to spend when you invest … which leaves more of what you’d like to keep for yourself.
Despite positive annual market returns during most of the decade, investors had to process ever-present uncertainty arising from a host of events. These included an unprecedented US credit rating downgrade, sovereign debt problems in Europe, negative interest rates, flattening yield curves, the Brexit vote, the 2016 US presidential election, recessions in Europe and Japan, slowing growth in China, trade wars, and geopolitical turmoil, to name a few. You may be wondering whether to stick with your investment plan vs making some adjustments.