Is It Time To Buy Gold?

Given the rise in the equity markets gold has gone down.  Gold is typically a hedge against market downturns.  It would seem to be counter-intuitive to buy gold now that stocks are giving a bigger return.  Plus no one knows how high the market will go.  However, now is probably the best time to start building a gold portfolio.  As the price of gold goes down due to higher equity returns you can buy more of it.  As the adage goes: "buy when people are selling and sell when people are buying."

Dividend Strategy Reinforced

One of my strategies that I have been adamant about over the years is buying high yield dividend stocks to help build cash in your portfolio.  I just looked at my two biggest earners and calculated the amount of dividends earned since I bought the stock and I can’t stress the point enough.  Even if the stock may be down in value the value of owning the stock will beat the fluctuation in price. 

Take CYS for example, it pays quarterly dividends but it has a high yield.  Even though my deficit is -$12.85 after owning it only 7 months I made $64 in dividends giving me a net profit of $51.15.

My biggest earner ARR has paid me $320.72 since owning it back in June of 2012 and I am up $127.34 in equity.

This just goes to show that even with the ups and downs of the market you still can make money off of a stock that pays consistent high yield dividends.