Here's the Best Thing I Did in This Bear Market
The stock market was rough in 2022, as inflation, rising interest rates, and fears of a recession all added up to put incredible downward pressure on share prices. Yet through that mess, I managed to both beat the market and see my investment income rise faster than even the sharp inflation we faced. I did so by following a strategy I laid out around a decade ago when I launched the Inflation-Protected Income Growth (iPIG) portfolio.
That portfolio was initially launched in December 2012 with $30,000 of cash. No new capital has been added or removed from the account since then, and it has been relying entirely on internally generated returns since launch. Its primary objective was to attempt to provide an income stream that grew at least as fast as inflation. To do so, it was designed around the principles of dividend growth, balance sheet strength, valuation, and diversification.
Unfortunately, the article series around that portfolio was eventually cancelled. Still, the investing strategy remains solid. As a result, I kept investing the money in that account using generally the same principles. Following that strategy was by far the best thing I did in this bear market. I credit it with how I've been able to start off 2023 in a much better place than I would have otherwise.
Source Fool.com
