So during this "choppy" market - which I fully expect to to be - and have said so on several occasions. I'm not "smarter" than you guys... I don't have a crystal ball... but I do have common sense. If you listen to the news (financial news programs) surely you can judge by the truly smart peoples statements that we "need" to fix the fiscal cliff before markets can continue their climb. It's the old - markets don't like uncertainty...
BUT here's what I want you to do. If you have Schwab - or Google Finance website... Pull up a chart of Kinder Morgan Partners (KMP). I will remind you - that I'm not pushing KMP - I do have a holding in it which is why I look at it - but it's a great example of what I want you to look at...
Look at this chart in YTD (Year to date)....not a great chart - in fact it's down YTD. Now look at it 1 YEAR chart... it's lumpy and bumpy but in the end it's UP 7% over that period -- NOTE THE DIPS -- Now look at a 3 year chart... Wouldn't you have loved to bought in the dips? OH and by the way - Wouldn't you have loved getting $4 per year per share in dividend ($12 over the 3 year period)? Now look at the 5 year chart... Remembering that even if you'd have bought at the very peaks you can find - that you'd have also received $20 in dividends during this period.
Now ask me "when should I buy?" And what's my answer? Buy when you can IF you're truly a long term investor... because I can't see when the next dip is going to be - and even if the stock dips - would you have missed out on the dividends it's paying? They'll pay 1.26 on Wednesday... and in 3 months they'll pay that again.... etc.
This is what you really need to look at. LONGER TERM... the fiscal cliff will be something we talked about. (I hope).
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