Best Strategy for this Economy?

[alliesmom]

Hi everyone,

I'm new to IBB but came over from the YM board. My question is this: For those of us with a long term horizon of 20 years+, what is the better strategy - to continue to buy stocks on sale via Index Funds or to try to get a better return in the interim via dividend stocks and the like?

My instinct is to just keep plowing money into index funds and buy the stocks now at a lower price since I won't need them for years instead of trying to get dividends now that I will just need to plow back in the market later when stocks are higher, but I'm worried I may not seeing things clearly or am not considering something I should.

Thoughts? Thank you.

[bimetalaupt]

Jan 1, 2012 12:46:57 GMT -5 alliesmom said:

Hi everyone,

I'm new to IBB but came over from the YM board. My question is this: For those of us with a long term horizon of 20 years+, what is the better strategy - to continue to buy stocks on sale via Index Funds or to try to get a better return in the interim via dividend stocks and the like?

My instinct is to just keep plowing money into index funds and buy the stocks now at a lower price since I won't need them for years instead of trying to get dividends now that I will just need to plow back in the market later when stocks are higher, but I'm worried I may not seeing things clearly or am not considering something I should.

Thoughts? Thank you.

ALL..,
TWO THING ARE AWAY FROM THE PRESS BUT HAVE BEEN USED AND STUDIED MY MACRO ECONOMICS.. DISCOUNTED CASH FLOW AND ALPHA ..

WITH ALL THE MONEY BEING CREATED BY THE ECB, FEDERAL RESERVE AND BOJ ODDS A REALLY GOING FOR A RECOVERY. I HAVE ALWAYS DONE BEST WITH THE BEST STOCKS IN EACH AREA.. IE ALPHA STOCKS MAKE MORE MONEY. AS FAR AS DIVIDENDS ARE CONCERN HOW CAN I MAKE MORE THEN 5% ON THE MONEY IF THE FIRM IS MAKING 30% ROE?

VALU-PRO OFFERS SOME INFORMATION ON THIS AND WITH HOLDINGS OF THREE TO FIVE ALPHA STOCKS YOU HAVE ODDS OF BEATING THE MARKET 7 TO 8 TIMES OUT OF 10.. WE CALL IT GOING LONG ON VOLATILITY.

NOW THE 50/50 SYSTEM HAS BEATEN THE MARKET OVER THE LAST 10-12 YEARS. I DO NOT SEE NUMBERER OF YEARS AHEAD WHERE BONDS WILL DO AS WELL AS THE LAST 10 YEARS.. THE 50/50 SYSTEM IS KNOW TO REDUCE VOLATILITY( RISK) AND 2012 COULD BE A VERY VOLATILE MARKET... WITH THE SYSTEM YOU ARE BUYING WHEN EVERY EVERYONE ELSE IS SELLING. IT TAKES GUTS,

BiMetalAuPt

[alliesmom]

Thank you very much for the info and warm welcome.