Thursday, January 19, 2012
The Downside of a Rally
Here we are. The S&P is at 1,314 and the DOW 12,625. Sounds great to most people because it means investments have increased in value. The problem for me as a dividend growth investor is that I have money to invest and good buys are harder to find. I have yet to see any signs of a market downturn in January, which is a surprise with recent downgrades all across Europe.
What to do?
I have cash piling up in my accounts that needs to be invested. Should I wait to get maximum value on my hard earned money? Will it be a long time before that happens? What if it never goes back down? I believe we will see more volatility this year and there will be some good buying opportunities, unfortunately that time is not now. I plan to make one purchase this month to prevent too much accumulation of cash. I think of it as treading water. I'll still have a nice reserve for corrections and dips.
Currently K, KO, and SBSI appear to have some value left. Before I wrote this post I put in a limit order for SBSI. We'll see if it gets executed.