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Here's a theory that I'll propose. It seems dumb at first glance and maybe it is, but I don't think so.
I'm approaching retirement. I've got enough cash right now that I don't have to sell any stocks for at least a couple of years. I'd like to get a return on my stocks, but obviously we're in a high risk time right now.
If I buy dividend stocks with a long-term hold perspective, I get a regular payment from them. Maybe 2 or 3 percent on most of the blue-chip stocks. So since I won't have a need to sell stocks for a while, it seems like a good strategy is to buy them regularly on a dollar cost averaging strategy. If the market keeps going down, I don't really care since I'm not selling them. I'll get the dividend and some positive return, and at some point the stock will come back up and I'll be ahead of the game. At the same time I'm not trying to time the market at all.
It seems like this will work other than a scenario where they drop more than the dividend amount and I have to sell them. But my goal is to never sell them. What do you think?
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I'm putting random letters here as a celebration of free speech: xigrakgrah misorojeq rkemeseit.
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