- Whatever stocks or funds we hold in our portfolios, most investors are hurting at times like this.
- But at least high yield investors can collect 9 and 10% cash distributions while they wait for markets to improve.
- That means if they are retired they don't have to touch their principal or sell at losses in order to generate current income.
- And if they are still at an accumulative stage and reinvesting that "river of cash," they can watch their income grow faster than ever as they compound at bargain prices and yields.
- All of which helps us "stay the course" and avoid doing something "defensive" that history shows we would almost invariably regret later when markets finally improve.
For further details see:
'Cold Hard Cash,' Paper Losses, And Sleeping Better At Night