ScaredtoQuit
Recycles dryer sheets
- Joined
- Jan 3, 2007
- Messages
- 211
2019 is turning out to be my best year ever! I attribute most of this to the shift in market preferences from growth stocks to value stocks which I have noticed taking place all year long. I am heavily invested in dividend stocks (which are mostly considered value) and individual bonds. My current allocation is 65 – 7 – 20 – 8 (equities, preferreds, bonds, and cash) and so far this year, I’ve had a return of 22.4%! This is helping to make up for returns over the last three years when I’ve lagged everyone else by wide margins. (During 2016, 2017, and 2018, I experienced returns of 14.10%, 5.54%, and a loss of 2.11%, respectively) Psychologically, the last few years have been tough because on more than one occasion, I’ve been tempted to throw in the towel and pursue growth like everyone else! If truth be told, I really needed this win so that I could stay true to my convictions.
For someone with a conservative mindset, “income investing” is a good alternative to the high profile growth mindset which seems to get all of the attention in the financial press. The yield of my portfolio is 4.24% which means I can easily draw off 4% each year without touching any of my principal. When we get to the inevitable down years, I expect my portfolio to decline less than comparable growth stocks because of the low betas inherent in my portfolio. Hopefully, that will leave me feeling warm and fuzzy!!
For someone with a conservative mindset, “income investing” is a good alternative to the high profile growth mindset which seems to get all of the attention in the financial press. The yield of my portfolio is 4.24% which means I can easily draw off 4% each year without touching any of my principal. When we get to the inevitable down years, I expect my portfolio to decline less than comparable growth stocks because of the low betas inherent in my portfolio. Hopefully, that will leave me feeling warm and fuzzy!!