Is Your Investment Portfolio Down Big? Consider This Timeless Investing Strategy
2022 has been a brutal year for investors, as many reputable small and large companies have seen their valuations crushed by a medley of recession fears, consequences of rising interest rates, inflation, geopolitical risks, and other factors. But 2022 doesn't tell the full story of why it's been a difficult time for investors. For that, we need to go back to 2018.
There have been three bear markets in less than four years: the U.S.-China trade war that sent markets tumbling in late 2018, followed by the 2020 COVID-19-induced bear market, and then the bear market we find ourselves in now. And through it all has been the flurry of meme stock mania, cryptocurrency crashes and scandals, and busts to booms in oil and gas paired with booms to busts across the technology and consumer discretionary sectors. These trends, along with widespread volatility, have made the investing experience stressful and confusing for many folks. If your investment portfolio is down big and you're looking to get your bearings, you're not alone.
The good news is that there is a timeless investing strategy that is highly effective over the long term and particularly resilient during bear markets. Here's why investing in companies that pay stable, growing dividends naturally results in a healthier, happier portfolio that can lead to life-changing wealth over time.
Source Fool.com
