Making Money in the Stock Market in 2020
So far 2020, at first glance, looks like it might be a repeat of 2019 where the S&P 500 index was up almost 30%. In the first half of January the S&P 500 Index is already up over 2%. While a market like this makes it seem really easy to make money, I have a feeling there will be a dramatic drop at some point this year and I don’t really have any thing factual to back that up, more of a gut feeling. That being said take this opinion with a grain of salt, however this gut feeling has me investing a little different as well, which is what I want to share with you all today.
If there is more volatility in the stock market this year, we may need to re-evaluate how and what we are investing in and that is certainly something I am doing. I recently made a video discussing a strategy that I am employing in my DGI (Dividend Growth Investing) portfolio, where I am evaluating and buying only the holdings that are nearing their ex-dividend dates and that are either on discount or are fairly valued. I still believe this is a great way to continue investing to accelerate the dividend compounding in my portfolio, and plan on continuing to do that in 2020. So check out that video if your interested in learning more about that, and that is a way I recommend you make money in the stock market this year. Another strategy I plan on employing is adding to my more defensive positions like United Technolgies (UTX), utility companies, and large cap blue chip DGI companies. The final strategy that is something that most good investors do on a regular basis is look for value opportunities in good companies that are going through some issues, but will eventually come out of and recover. Investing in this manner is certainly not flashy and won’t give you massive gains into your accounts, but I believe it will keep a good stream of dividend income and growth coming into the portfolio. With the combination of these methods, I believe no matter how 2020 turns out at year end I will have continued success investing and making money, and encourage you to consider doing the same (if it makes sense for your situation). Happy Investing everyone!