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I read an article about 3rd and 4th quarter increase and then rapid drop(price of stock). of course if you the stock value increases while you get your divs sounds like a win win.
I guess what im getting at is, is it better to buy early in the year as opposed to late in the year?
Does it even make a difference?
Thanks
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You'll read these kinds of stories all the time. You have the December portfolio cleanup month for YE financials by the big financial companies. "Sell in May and go away" -- referring to the summer doldrums because all the big shot traders are in the Hamptons for the summer. Us older gents sometimes use the October 87 crash as a touchpoint for October being the worst month although that's only because we lived through it. Parenthetically, I think the Great Depression started with the market crash in early October also. Statistically speaking, September is supposed to the worst month for returns going back decades. This was from an article on Marketwatch on 9/2/2014:
"But if you go back even further to 1945, it’s even more apparent where September gets it’s bad reputation. Sam Stovall, U.S. equity strategist at S&P Capital IQ, notes the S&P 500 has ended September higher only 45% of the time, the worst showing of any other month, declining an average 0.55%."
Personally, I'd just focus on buying quality companies when the price meets your criteria. You never know when Mr. Market is going to have a fit.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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Further reading:
http://seekingalpha.com/article/2100633-...hes-part-1
http://seekingalpha.com/article/2268513-...why-part-1
http://seekingalpha.com/article/2277813-...ash-part-2
http://seekingalpha.com/article/2306285-...rprise-you
http://seekingalpha.com/article/2368265-...ual-stocks
Whenever some Guru-Wanabe is thumping scare tactics I go to BigCharts.com and look at the Dow from as far back as the chart goes. Yes there was the Great Recession and Depression but the overall direction is up, up, up.
And if you are retired or getting close and are a DG investor, while those will lose value during a correction, they will still keep paying if you have bought wisely.
Cheers
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
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If regular price swings were known in advance, they would be traded out. I'm not a believer in Efficient Markets Hypothesis, but this is a choice illustration of how EMH works.
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Interesting articles R&C2, i will have to read the rest of them. so i guess what im concerned about is price corrections and overvaluations. @EarthToDan - are you saying that you trade stocks out for others if you can foresee the corrections and flux in price?
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There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
