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Market Update May 11, 2011
Posted on | May 11, 2011 | Comments Off
The market closed down over 1% today and investors agree that there’s a definite pick up in volatility in the broad markets in recent days. Commodities have been getting slaughtered and stocks are languishing in an area trying to break out.
The day to day market action isn’t really what interests us, but it’s important to watch especially as we approach the close of QE2 from the Federal Reserve. There is a good chance that we have heightened volatility in the days and weeks ahead which is what we like to see as dividend investors.
We want more attractive entry points for bulk share purchases and lower prices for the reinvestment of dividends. Do you hear that? That means I’m rooting for a lower market indeed. I’m in accumulation mode. Not liquidation mode. And I have years and years of compounding ahead of me. As such, a crash in stock prices would be beneficial for me. If I retire down the road, then I’ll root for higher prices as I’ll be in liquidation mode (maybe). Make sense?