Posts Tagged Dollar Cost Averaging

A key component of a high performing portfolio is to take advantage of corrections in a stocks market price. If the share trades at 20, 18, then 14, then 18, then 20…the investor is lowering their average price per share and boosting their performance.  Volatility is also an opportunity, not just the face of risk.
www.crinvestmentadvisors.com

Even the recent confusion about whether global markets will correct again this fall has started my phone ringing again. I often say, “It is literally these moments that you pay us 1% as an independent advisor for.” Even if Nostradamus himself or the Delphi Oracle picked up on our phone call and said, “your portfolio will drop 25% by the end of the year,” I would still advise you to hold. Then, I would remind you how happy we will be to pick up more shares at prices below your average or mean stock price. That is cost averaging. We love stocks, not stockmarkets. We understand the value of a company and the prospect of that company over the next ten years because we have intensely analyzed in the context of the industry and economy. We buy and build significant positions of stakeholder stocks in faster growing economies. In our cash or fixed income portfolio, we keep it short and safe while scouring for marginal returns.  This combination provides liquidity and growth.  This approach works but it takes discipline and long termism. I can´t tell you how happy and affirmed-secure the clients feel whom listened and picked up shares of stocks in February 2009 at a 50% discount from today. Some clients simply felt that the fundamentals had changed and not market sentiment and are now regretting it. We set out to sea with a plan. Now, let´s stay the course.

http://www.bloomberg.com/apps/news?pid=20601087&sid=apN0fz1WuUCU

It is funny but true

www.crinvestmentadvisors.com
Wealth Management