Investing 102

[GregWeld]

I've been poking around trying to figure out where I need to put some money to work and get some yield... which triggered something in my pea brain that might want to be brought up for this thread.

That wouldn't be the above post about some failed stock that now trades in Mexico... LOL

I like to buy on "DIPS"... and today we have a dip. Is this the dip I'm waiting for to get me excited? Just NO.... While down 200 points on the DOW seems like a "WOW"... it just isn't. It was 10 years ago --- and the number seems "large" - but it's NOT on a percentage basis. Down 200 points on the DOW is barely over 1 PERCENT.

In money -- everything is about PERCENTAGES. Doesn't matter if you make 1 dollar -- as long as that was on a 10 dollar investment - you made 10%... HUGE.... 1 Percent... come on.... 10 cents on 10 dollars. Not enough to move the needle.

So ---- While I say I'm poking around.... and I have some serious cash to put to work... I'll wait. IF the market is heading for "correction" territory... then that's in that 10% vicinity. THAT get's me excited... because it raises my yield... and it CAN snap back and recover that 10% down move - making me seem really smart... If it stays down - so what? My yield is good... I didn't pay "UP" and then have to wait for it to recover... and if it goes down beyond the 10% -- I'm a lot closer to where it goes than I am had I paid "full price". Think of it as NORDSTROM'S just did the whole store at 10% off... you'd be happy as hell to go shopping. If the 10% didn't lure you into the store -- next month they might go to 15% off.... you should be happy once more - go grab that sweater you passed on at the last trip! Now you're glad you waited. If they didn't go to 15% off ----- and they go back to full price.... it's okay - you didn't need the sweater that badly anyway. There will be more sales in the future.

That doesn't mean you should be frozen in place. YOU ARE NEVER EVER GOING TO GET THE VERY BEST PRICE - on either the buy side OR the sell side... ain't going to happen. Get over it. Buy when you're ready - start collecting those dividends and 5 years from now you'll look like the smartest guy in the entire Universe.