Despite the market dropping, cash keeps coming in. If you have a job, savings, dividends, or some form of consistent income, then chances are you have excess capital to invest at some point during this year.
When I get a larger amount and I get notice – I take some time, usually a few hours, to go through exactly how I’ll invest it, much like a capital package. I set up some requirements for that money, I set up targets, and I allocate the amount based on these targets.
Because in the end – the markets can drop, they can decline over time, but investing in undervalued, good-yielding businesses means that your long-term upside is, at least potentially and theoretically, solid. That’s what I’m counting on when I do investments like this.
Market timing is a great strategy – in theory. But given the absence of any and all crystal balls, it really doesn’t work in the actual market or the real world. The real math of investing is clear on this – long-term returns for broad investing make a case for being invested even in downturns – at least if your time horizon is long-term. Missing out on those recovery days is what can essentially kill your returns compared to someone that “stays in”.
My strategy, therefore, is very simple.
I keep investing.
I continue to put money to work in the safest, most undervalued companies with the highest possible yield and safety that I can find. Not just in the USA or Canada. But in Germany, France, UK, Sweden, Norway, Finland, Denmark, Austria, Switzerland, Spain – and many other countries. International investing in undervaluation is my “spiel”.
And it’s working very well, despite the volatility of the market.
While other investors may say that we should go “90% cash” or “stay out”, this is not my approach. As I see it, it will never be my approach.
It’s with that in mind, that I’ve made the following allocation plan for $60,000.
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