Wow, this market is just absolutely brutal. I was in High School when the dot com bust happened, and I remember the harsh reactions and in particular my brother who was working as a web developer at the time describe the carnage. It was nothing like this. This is unprecedented, and actually puts into question our thinking about the entire economic system. I’ve never been a big fan of credit, I avoid debt like the plague. I don’t have a mortgage, my car loan is two months from being paid for (my car has about 60,000 miles on it), and after that it’s just some of my student loans that I have left to pay off. In short, I feel just a little more comfortable in a scenario like this.
But the fact of the matter is if you think the economy will ever bounce back, then start hunting for yields. Look for stocks that have been crushed for no good reason. Look for stocks that have been time tested performers and deal in a business that’s relatively recession proof. People will still buy food and they’ll still need razors and tampons at the end of the day, but they may be willing to shift down to a one car household.
Dividends may be taking a serious hit since much of their power was derived from the financials, but theres other opportunity out there.
My name's Frank and I'm a life long seeker of passive income and dividends. I work in Financial Services and invite you to join me in my search for the holy grail of finance: passive income. My methods tend to be unorthodox but effective. Whether it's through investing or other means, I believe in creating many sources of income to give me the flexibility to live the life I want, when I want it.
