This is a very hard question to answer…I can't lie to you.

The short answer is YES. The long answer is below and comes with sharing our personal story.

I'm guided by the following scripture Ecclesiastes 11:2 ERV - "Invest what you have in several different things. You don't know what bad things might happen on earth."

The wisdom in the verse speaks to not knowing the future so its important to INVEST and Keep Investing. In fact, we developed our L.E.A.R.N. methodology as a guide for new investors. The "N" stands for Normalize Investing Regularly. This means for better or worse we encourage you to consistently allocate your resources to preparing for the future. 

As it relates to our personal strategies, Renate and I have two different approaches. I'll explain mine and allow her one day to explain hers. I've been responsible for our Investment Portfolio since around 2016 when we started investing. We've adapted our strategy over the years but in the last twelve months, we have taken a new approach. 

The new approach involves two strategies, Concentration and Dividends.

I'll take a minute to explain both.

Concentration increases your risk but it increases the potential gains when Investing. For us this means we rebalanced our portfolio down from 12 stocks to 5. This meant taking some losses as we were down in a few of those positions but I suspect those losses would have been greater if we waited longer to make the decision. Taking Losses are a part of investing, something I may write on soon (let me know if I should in the comments). Concentration also means we can have a reasonable position in terms of volume, something that also maximizes your potential gains. If you're not sure what concentration entails and how to go about it, watch here: Portfolio Rebalancing - Determine the Right Mix of Assets

The next part of our current strategy includes a focus on Investing for Cash Flow using Dividend Investing. Though Dividends aren't guaranteed, we've identified investments that have a track record for paying dividends and have positioned ourselves to take advantage of those payments as they come. Dividend Yields locally aren't that attractive to me personally, but it beats a Savings Account. Of course, my yield would be based on my purchase price, so some context is important as it relates to the yield I receive. If a company has cash and not stated or clear strategy for use of that cash, a dividend should be a reasonable expectation in my opinion.

We think those two strategies Concentration and Dividends will hold us over until the market overall increases in terms of its opportunities for returns. This does not mean opportunities don't exist on the market currently, it just means they might be harder to find for the average investor.

We've also been positioning ourselves in terms of reducing our personal debt, and optimizing our personal cash flow. Something I'll expound on another time.

Until the overall economy improves, we aren't like to see an exuberant stock market as they are both correlated. But now is a great opportunity, once your cash and personal situation allows, to continue investing and build good positions in great companies. We can't predict the future but we can invest our resources wisely until things improve.

The goal of this article is to encourage investing regularly, I know each person's situation is different so I greatly encourage you to speak with a licensed Investment Advisor before making any changes to your portfolio. If you'd like to learn the basics of investing, managing your money or clearing debt, then you can book a 1:1 session with us or enroll into our coaching program to get help.

More information here: https://learngrowinvestclub.com/consultation/

Disclaimer: this article isn't financial advice, please consult a financial advisor before making any financial decisions. We are a community committed to educating others through our content, articles and videos.