Q: This is more of a "HOW TO" type question. There are 2 strategies that I've been thinking may help me react to the next down event like Covid 19, 2023. One is to sell everything early and buy back in once the markets level out. The other is to just buy dividend paying stock and get paid while waiting for the inevitable return of the market.
So, if I adopt strategy 1, how would I actually go about it? It seems obvious there would be more sellers than buyers so would you simply sell at Market and hope you recoup enough $ to rebuild your portfolio, or would you use Limit (ie you feel the market will fall 20%, so set a low limit where you feel below it maybe to damaging or to low $$ with which to rebuild, but low enough where you may get more buyers than sellers using Market.
In strategy 2, the assumption would be No Economy could ever go to zero, there is always some companies who make it through black swan events. So how would I identify those dividend payers who could maintain their dividends or a portion of their dividend in dire market conditions?
So, if I adopt strategy 1, how would I actually go about it? It seems obvious there would be more sellers than buyers so would you simply sell at Market and hope you recoup enough $ to rebuild your portfolio, or would you use Limit (ie you feel the market will fall 20%, so set a low limit where you feel below it maybe to damaging or to low $$ with which to rebuild, but low enough where you may get more buyers than sellers using Market.
In strategy 2, the assumption would be No Economy could ever go to zero, there is always some companies who make it through black swan events. So how would I identify those dividend payers who could maintain their dividends or a portion of their dividend in dire market conditions?
