The Smart Investor
    Facebook Instagram
    Sunday, October 1
    Facebook Instagram LinkedIn
    The Smart Investor
    • Home
    • About
      • About Us
      • Careers
    • Smart Investing
      • Getting Started
      • Investing Strategy
      • Smart Analysis
      • Smart Reads
    • Special Free Reports!
    • As Featured on BT
    • Our Services
      • Our Services
      • Subscribe now!
    • Login
    • Cart
    The Smart Investor
    Home»Investing Strategy»Smart Thought Of The Week: Tug-Of-War
    Investing Strategy

    Smart Thought Of The Week: Tug-Of-War

    David KuoBy David KuoJune 10, 2023Updated:June 10, 20233 Mins Read
    Facebook Twitter LinkedIn Email WhatsApp
    Share
    Facebook Twitter LinkedIn Email WhatsApp

    It seems as though the bears have gone into hibernation and the bulls are now in charge. According to market statisticians, Thursday 8 June marked the day when the bear market that started on 12 October 2022 officially ended.

    The end of a bear market is reckoned to be when an index has risen 20% from its low point. It’s somewhat arbitrary and maybe contrived. But who are we to say. So, on 12 October, the S&P 500 closed at a low of 3,577 points. On Thursday 8 June, the index ended the session at 4,293 points. That is a 20% rise.

    But not everyone is convinced that we can look forward to better times ahead. They point out that central banks are far from done with their interest-rate hikes. As we have seen, some central banks, such as the Reserve Bank of Australia and the Bank of Canada, can turn on a sixpence.

    Sceptics also point out that the rally in the S&P 500 has been driven by just a handful of stocks. Rather than a broad-market rise, the increase has been concentrated around a bunch of tech names and companies that are purportedly involved in artificial intelligence (AI).

    Scepticism is not unusual, as markets emerge from a long period of falling prices. It is what is commonly referred to as bull markets climbing a wall of worry. It is not until the last sceptic or bear has been converted that the bull market will come to an end.

    However, dividend investors should resist the urge to listen to either the uber-bulls or the uber-bears. So, forget about the tug-of-war between the two camps. Instead, we need to focus on what really matters, which is to derive increasingly higher income from our portfolios.

    It might not be anywhere as exciting as talking about bull and bear markets. But it can be considerably more rewarding, particularly over the long term.

    What’s more, as the market becomes increasingly more obsessed and excited with AI, it could mean that income investors have more opportunities to buy more of those boring dividend stocks that have been ignored.

    Quite frankly, we shouldn’t really care who wins the tug-of-war. If the bulls are right, we might be rewarded with some price appreciation as well as our dividends. If the bears win, then we still get of dividends and, perhaps, a chance to buy more shares at better prices. Either way, the long-term income investor wins.

    If you’d like to learn more investing concepts, and how to apply them to your investing needs, sign up for our free investing education newsletter, Get Smart! Click HERE to sign up now. 

    Get more stock updates on our Facebook page. Click here to like and follow us on Facebook.

    Disclosure: David Kuo does not own any of the shares mentioned.

    Share. Facebook Twitter LinkedIn Email WhatsApp

    Related Posts

    Smart Thought Of The Week: Stagflation

    September 27, 2023

    Smart Thought Of The Week: Murky

    September 18, 2023
    (TSI) singapore stock market millionaire

    5 Simple Steps to Become a Singapore Stock Market Millionaire

    September 7, 2023
    Facebook Instagram LinkedIn Telegram
    • Careers
    • Disclaimer & Privacy Policy
    • Subscription Terms of Service
    © 2023 The Smart Investor. All Rights Reserved. The Smart Investor, thesmartinvestor.com.sg, an investment education website managed by The Investing Hustle Pte Ltd (Company Reg No. 201933459Z) is not licensed or otherwise regulated by the Monetary Authority of Singapore, and in particular, is not licensed or regulated to carry on business in providing any financial advisory service. Accordingly, any information provided on this site is meant purely for informational and investor educational purposes and should not be relied upon as financial advice. No information is presented with the intention to induce any reader to buy, sell, or hold a particular investment product or class of investment products. Rather, the information is presented for the purpose and intentions of educating readers on matters relating to financial literacy and investor education. Accordingly, any statement of opinion on this site is wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader. The Smart Investor does not recommend any particular course of action in relation to any investment product or class of investment products. Readers are encouraged to exercise their own judgment and have regard to their own personal needs and circumstances before making any investment decision, and not rely on any statement of opinion that may be found on this site.

    Type above and press Enter to search. Press Esc to cancel.