Saturday, March 11, 2017

Weekly Roundup - March 11, 2017

Curated list of articles on dividend growth investing, financial independence, freedom and passive income
Happy Weekend!  Check out what's been going on in my world and some of the best articles from around the blogosphere.
It sure feels great to be back home with my wife and daughter after being gone for a month.  It's amazing to see all the changes that my daughter has undergone in that time.  Before I left she wasn't really even trying to crawl and now she's a pro and never stops moving except when she's eating or sleeping. 
Unfortunately this week at home will be coming to an end soon and I'll be headed back out to work most likely tomorrow or Monday.  Of course I can't complain because having a second income again is really clearing things up for us financially.  We still have a ways to go before we can start investing regularly again, but I can start to see the progress we'll be making which is a big change from the cash drain that we'd been doing for the last 10 months or so.

The bull market has officially turned 8 years old since the markets bottomed out in March 2009.  With a bull run this long, markets making a big move with the "Trump Bump" and sitting at all-time highs I can't help but start thinking about investor psychology.  While it's great to see more dividends coming in each month or quarter, you can't sacrifice your investment principles just to increase your dividends.  That doesn't mean you need to close out your positions and move to cash, but rather just be cautious when investing new capital and make sure the investment meets whatever value investing criteria that you have.  

Many of us, myself included, have only invested during the 8 year old bull market and almost everyone I know says that they will ride out the storm when the markets go haywire.  While I share in that belief, I can't help but wonder how I'll truly react when all of my positions are down 10%, 20%, 30% or more.  It take nerves of steel to see those kinds of losses, even if it's just on paper, and continue forward.

On to the Roundup

In case you missed them, here's the posts from Passive-Income-Pursuit over the past week.

Also, be sure to sign up to receive posts via email and to follow me on Twitter@JC_PIP so you don't miss anything.  You can also follow me on Facebook or Pinterest if you prefer those methods to get your daily fix and keep up to date on happenings around here.

Once again I'd like to say thanks to each and every one of you that read, commented, and shared posts from here this past week.  I think this dividend growth investing and financial independence community is amazing and the openness from everyone is awesome.  Thanks again!

Now on to the links!

Explaining a Paradox: Why Good (Bad) Companies Can Be Bad (Good) Investments by Aswath Damodaran

 Rant: ??? by 1500 Days to Freedom

Passive Income Update - February 2017 by Roadmap2Retire

Epistemologically Arrogant by A Wealth of Common Sense

Update - Life & Investing by Income Surfer

Protect Your Net Worth From Financial Distortion by Financial Samurai

Insuring Your Portfolio With Insurance Stocks by DivHut

Five Myths About Index Investing by Dividend Growth Investor 

Disturbing New Facts About American Capitalism by Jason Zweig

Why I Don't Feel Wealthy Today by Retire Before Dad

Pressure Test Your Retirement Plan With The Five What Ifs by Our Next Life

Bert's February Dividend Income Summary by Dividend Diplomats











If you're looking for investment ideas, A Frugal Family's Journey maintains a list of stock analyses and recent buys from fellow bloggers.

I hope you all have a great weekend!  

Image courtesy of Gubgib via FreeDigitalPhotos

5 comments:

  1. The changes a baby goes through are incredible. Almost daily if not weekly you'll notice many new milestones. Thanks for sharing the DivHut post. I appreciate it. Also, it will be interesting to see who has "nerves of steel," as you put it should we see a 10%, 30% or 50% decline in the market. I already know I'll ride it out as I was already invested in late 2007 and saw deep red in every stock I held during 2009/09. I sold nothing, I continued buying which is what I plan to do again. It's interesting to see that several of our fellow bloggers have gone heavy into cash or completely sold out many months ago. I think when it comes tumbling down we'll be seeing many more sells.

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  2. I like the article by DGI, but still feel that index investing is as passive you can get. Nothing in investing should every be truly passive because that implies you are not engaged at any level which can be dangerous.

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    1. Thank you for the kind words. Glad to see that at least someone else liked it too.

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  3. Glad you have a chance to spend time with your family.
    In terms of a down market, I project out my dividend income for the next 15 years. I have noticed that my projected income is declining with the rise in start market prices-- the reinvested dividends are not buying as many shares, which also means yields are down.

    My measure of how well I am doing is my future dividend income. That keeps me from worrying about market slides.

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  4. It would be interesting to see if people stick to their guns when the big bad bear comes knocking on our doors. It was much easier to stick to my guns in 2008 - 2009, since my net worth was lower. I find it easier to focus on the dividend income, than the fluctuations in portfolio values.

    That being said, we did have some corrections in 2011 and early 2016, that some characterize as short bear markets.

    The other thing is that many are sitting in cash, waiting for lower prices. But I wonder, what if prices either stay flat or keep increasing? Wouldn't that create the fear of missing out?

    Thank you for the mention PIP!

    DGI

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