Oh the stock market...it's a love/hate relationship for me. My research and study expose a great buy or a great short...all the indicators are there so I move in for the kill. Alas, it often does the opposite of what it should. I'm sure just to spite me.
I've had to adjust my investing strategy in the market for the sake of my mental well being and financial survival. I've had to focus on stodgy old profitable companies and asymmetric bets for my speculative positions. I won't go into details of my portfolio but just want to share what I've come to believe about owning stocks.
I think it is necessary to own some stock for a truly diversified financial portfolio but a lot less than what "financial experts" aka "salesmen" want you to believe. 10% of your portfolio dedicated to a handful of high quality stocks is plenty.
The bulk of your holdings should be in the old, stodgy, smelly, can barely move, dividend paying companies that are boring to even think about. I like companies such as Chevron, IBM and American Express.
If you look at the dividend history of these old fogies you'll see a consistent and ever growing dividend payment...I'm talking about decades of consistent and growing dividends. Translated: These companies make profits every day and they are committed to rewarding their shareholders. Further translated: This means you're gonna get paid every quarter. Rain, sleet or snow these companies are gonna pay you. Stock market crash...they're still gonna pay. In fact you hope for a crash so you can buy some more of their stock cheap and get paid even more.
If you don't own stocks you may want to consider building a selective portfolio of the highest quality dividend payers.
Look forward to any feedback from stock investors out there.