|
Today is Dividend Day.
The series where I teach you 5 things about dividend investing in less than 5 minutes.
 |
1️⃣ The Biggest Risks to Markets
A new survey from Deutsche Bank shows that investors are overwhelmingly worried about one thing: AI and Tech.
Over half of those surveyed (57%) believe a crash in tech valuations is the biggest risk to the market in 2026.
Other worries include:
The Fed: Unexpected interest rate moves.
Private Capital: Potential trouble in private lending.
Bond Yields: Interest rates rising higher than planned.
Will any of these cause a crash in 2026?
I have no idea, but markets rarely crash because of the things everyone is already watching. The biggest danger is usually the black swan event no one sees coming.
 |
2️⃣ DCA on Steroids
Since we can’t predict the future, the best strategy is to have a plan.
If the markets do dip or crash, here is a great way to take advantage of it: Dollar-Cost Averaging (DCA) on Steroids.
Instead of investing the same amount every month, you buy the dip more aggressively as prices fall:
10% Drop: Increase your investment by 20%.
20% Drop: Increase your investment by 50%.
30% Drop: Double your usual investment.
This turns a scary market into a clearance sale for your portfolio.
 |
3️⃣ An Investing Quote
Shelby Davis turned an investment of $50,000 in 1947 into $900 million by 1994.
That’s a return of almost 1,800,000%.
How’d he do it?
By buying boring stocks, like insurance companies, and investing more when the prices were low.
The math is simple: buying more shares at lower prices leads to higher returns later. But emotionally, buying during a crash is hard.
This quote from Mr. Davis might help:
“You make most of your money in a bear market, you just don’t realize it at the time.”
- Shelby Davis
 |