**Investing**
Oh boy, the stock market. I must say, it has been quite good to me. The last two years I have been able to accomplish many financial goals thanks to a **bull market** that we have never experienced before. The question remains, how long can this bull market last. When will it run out of juice? The million-dollar question.
Nobody knows the answer to it but what I can tell you is that eventually it will come down crushing. Or at a minimum, a market correction that will wipe all those capital gains and growth attained by many investors like me.
But before I continue writing this article, let me first welcome you all again to my financial blog. This is the **@EconomyChief** saying hello again. I know, I know. I have been out for a while and have not written anything. Let’s just say I have been busy accomplishing a few items I had on my todo list. I also took a long needed vacation with my family.
Like many financial bloggers who love to brag that they are retired, I am not retired. In fact, I like keeping myself busy. Work, as you all have heard, does not feel like work when you love what you do. Plus, and not that I am complaining, I do not get a penny from writing these articles. At least not yet. My blog page is free of ads, for the moment. The reason is simple. I just don’t want to place just any ad on my blog page. Perhaps later, but I will be quite selective about the companies you will see ads from.
Also, I want to inform you all that you will see less graphics on my post. It takes too much time to look for images, even if they are royalty-free. I like to write and that is what I will do. Plus, my readers are quick learners and are able to comprehend and apply what they read.
Please take no offense, but I think those that like to see images when they read are a bit slow to grasp the material. Think of the days in college, where the books had little images. On the other hand, children, the younger they are the more images they need to learn the material. As adults, we don’t need that.
**Delta**
Yes, it is back, yet again. **covid** with a twist. What does it all mean from an economic perspective and investment perspective? It means opportunity to yet again increase our net worth and get closer to financial independence.
**The Stock Market**
This is where the money is made. I have heard people cry and complain about the stock market. Do not be afraid of the stock market my reader. The stock market is your friend and not your enemy. Time is also your friend. Most people lose money in the stock market because they are impatient. A few dos and don’ts if you decide to invest in the stock market or perhaps you are already investing in the stock market via your 401(k) at work or your Individual Retirement Account (IRA).
**Dos**
**Systematic Investment**
Pick a day of the month and pick an amount that you are comfortable with that will go from your checking account to your investment account. If you can set up the systematic investment to happen weekly as opposed to monthly, even better. The key here is to have a plan so that you put money away from your checking account and into your investment account. If you leave your money in your checking account the likelihood of you spending it it’s very high because you feel that you have a lot of money and you need to take a vacation or buy some electronic gadget that you will not use.
My systematic investment in all the different accounts I have from retirement accounts, trust accounts, REITs account, etc., has kept me from replacing my luxury car that is ten years old to a new one. After all the money is moved from my checking account, I am back to zero and no money for new purchases because it is all invested. You see the beauty in this system. Keeps you from throwing money away. I may replace my car in the next couple of years, but not now.
**blue chip stocks**
Pick 5 blue chip stocks, Blue Chip stocks are referred to stocks that have been trading in the stock market for many years and have a track record, basically well established companies. Just pick 5 from different industries and sectors but don’t pick stocks just because you like their advertisements or they have some athlete as their spokesman. Pick companies that you know are going to be able to provide growth, dividends and have a good track record. It helps if you can analyze their financials. Review their income statement, balance sheet and any financial document they produce.
**diversification**
Pick stocks that are spread across all sectors and industries. For example, one could be Ford. An automotive industry or it could be Tesla. Then select one from the financial sector, pharmaceutical sector and so on. Don’t go crazy with the selection. Keep it simple. Pick one and your are done.
**bonds**
Throw some government and corporate bonds in the mix. They will help you hedge against interest rate risk and balance your portfolio. The percentage of bond position will depend on how conservative you want to be. The older you are, the more bonds you should own.
**REITS**
You need to add some real estate investment to the mix. I own rental property so I get my diversification from that exposure. But I also have money invested in Real Estate Investment Trusts (REITs). This month I placed a small amount in an eREITs, a bit different than a REIT. More on that on another article. $10,000 and we will see how that goes. Did the same for my wife and open an account for her.
While I have a nice position in the equity market, I am sitting on a large cash position for when the real estate market corrects itself post covid. Then I can purchase another real estate property or more REITs.
**save, save**
That is all for this article. Leave comments below. And never forget that the key to living financially well is save, save.
@EconomyChief out.