Thousands of investors found the following articles useful last week; you might, too! In these articles, I talked about what I learned from the financial crisis of 2008 and how it applies to the current market downturn, tips for new investors, and what not to do in a falling market.
Top Article: What I Learned From the Financial Crisis of 2008
Investors who experienced the financial crisis of 2008 would remember the scary experience. For example, the Big Five Canadian banks fell 50% from the 2008 highs to the 2009 lows.
I bought shares of Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) after it fell about 24% from its 2008 high. Yet, it went on to fall another 30%. To learn how I reacted, what lessons I learned, and how I applied the experience to the current market downturn, read more at What I Learned From the Financial Crisis of 2008.
Top Article #2: Tips for Smart Investing
Investing is not exactly easy, but it doesn’t have to be complex either. New investors can start by buying only quality, dividend stocks when the market is down. That way, you’re not paying too much for companies; lower prices also gets you a higher income to start. How?
Just in October, Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) cost as much as $102 per share and yielded only 4.4%. Today, after the pullback, it only costs under $88 per share and yields almost 5.3%. Immediate income boost!
For more investment tips, go to New Investors: Tips for Smart Investing.
Top Article #3: Don’t Do These 3 Things As the Market Falls
Holding a portfolio of stocks when the market is falling can be scary, especially if you started building your portfolio in the last 6-12 months.
Dividend investors can be more at peace during these extra volatile times because dividends provide a positive return while prices are falling. However, that only works if you hold on to shares of quality dividend companies and don’t sell them at a loss.
There are 3 things dividend investors definitely shouldn’t do in a falling market.
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Disclaimer: I am not a certified financial advisor. This article is for educational purposes, so consult a financial advisor and or tax professional if necessary before making any investment decisions.
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