Don't be too sure that your shares will continue increasing in value! They could go the other way, which is why the Market is always a gamble. I recently re-invested a matured CD into another one which earns higher interest. Retired people should play it safe...playing the Market is for those who can afford the losses and have the years to recoup those losses. This is just my philosophy, and I've done OK by it. Hal
I am not a believer in holding stock in in one or two companies because your have risked all of your investment into just two companies. I lost my shirt that way investing in tech companies. All the advice I got was to just buy ETF's or mutual funds that hold stock in many companies, including defense so that no one or more companies can destroy your investment. That is what I have done and made money even up to today. I do not know what mutual fund you have since most made money. I turned $1,000 into $16.000 in one fund. Vanguard is one of the top firms to offer mutual funds. They always out perform other funds. Google it. Also look at ETF which are funds run by computers. They work like a mutual fund at much less of a cost. If you research it you will find that these Electronic Transferred Funds outperform managed funds 87% of the time. Computers can react a lot faster than fund managers who sometimes only make changes every few months. ETFs can react to market changes almost instantly and the fee you pay is so much less. I would not feel comfortable with my investment into just two companies no matter what industry since I am retired. There are ETFs that are specialized in different sectors like real estate, defense, etc. that buy stock in many companies to avoid losing it all. It is your money but after researching this to death years before my recent retirement. You will find many say just buy four funds that cover US and Foreign Stocks and the next two cover US and Intl bonds. Your money will rise and fall with the market. As I learned the hard way, the market always goes up. When the DOW hit 12000 I thought it would not go much higher and look where it is now. In just 10 years many doubled their money. BTW, my former business was doing the logistics for defense companies through DOD and DOS and did not want to invest in their stocks. Delays and cancellation of contracts, being underbid, military spending reduced due to a recession or treat agreements or a new President if one gets impeached before his term expires. Just too much risk to depend on one person and two companies for my comfort. There are lots of good articles out there for seniors investing and what is safe and what is not. Research and then choose your poison. The stock market often does not follow logic. One newspaper article can bring the stock prices of a company tumbling down. This is just my opinion as a very cautious investor. Worst thing to happen is to need your money during a recession. Have you taken a look at online banks. I am getting 2.85% on a 5 year CD which is about the same as Treasury notes and corporate bonds. All FDIC covered. My online bank pays 1.75% on my savings account.
Vinny, I agree with you. I only invested the money from that CD in those two companies. I already had stock in other companies plus some mutual funds. My primary investments are in quality stocks that pay good dividends.
@Holly Saunders Holly, the stock market is little more than a gambling casino. True, good Blue Chip stocks are generally good for the long-run, but still no guarantees. There are Preferred Stocks, separate issues of companies which are given preference to pay their dividends first, before the Common Stock, but given very "hard times", no guarantee either. One financial advisor sage once said if the market is generally going up, one might as well throw a dart at the Wall Street Journal stock listings, and buy the one it sticks in. Frank
The latest monthly statement from my Investment Portfolio shows that I lost over $5000 during the month of October. I've lost more than that in the past and bounced back...I'm sure my holdings will rebound once more, as they did from the 2008 crunch. Calvin Coolidge once said "The business of America is Business." Yowsah! Hal
Small corrections are a good thing. They correct the over valuation of the market. @Harry Havens probably has opinions on this. You could invest in bonds, treasuries, or other things if you don't want the swings.
@Don Alaska Of course I have opinions, but I must not offer any advice. The statement of Coolidge was correct then and now. However, the Dow/S&P companies are multinationals. That great American company called GM now makes most of its money in China. Ford is not far behind. The S&P is likely overweighted imo, in tech stocks, with exposure worldwide. Some people are selling stocks based on interest rates in the U.S. going up. Some people are buying stocks because the U.S. economy is growing. Some people are selling because they think China's economy is slowing. Everyone of which could be true... or false.
@Harry, you seem to be quite savvy regarding the financial world. What would you charge as a commission to be my Broker? Hal
“Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard.” - Warren Buffet
LOL, I may be better read in financial matters than some, but there is a huge difference in looking at the financial markets and picking individual stocks, knowing what/when to invest in bonds, metals, etc. Greed (irrational exuberance) can drive an investment instrument far beyond it's actual worth and fear can do just the opposite.
My investments have lost over $20,000 in value this year but as long as I'm buying and not selling that's fine with me. I bought a thousand shares today at a price which will make my average cost per share a lot lower. When you reinvest dividends the low price gives you more shares.