If the current crisis has a silver lining, here it is: Many investors now understand the present system simply does not work. They are searching for an alternative. Unfortunately, the securities industry has a vested interest in preserving the status quo.
The question I deal with in this column reflects a desire to find an investing strategy that will succeed. Unfortunately, the strategy chosen is unlikely to meet that goal.
Q. I have been continually buying during this downturn usually keeping my 401k deposits (around $800 every two weeks) in cash (BrokerageLink cash fund) until a bad day in the market. On such days I have been slowly buying stocks with dividends like PG, ADM, MON and some ETFs like EEM, EWZ, and USO. I tend to buy on the dip and average down my losses. I'm 35 and wonder if this is a good strategy?