Hey There Income Hunter,

Inflation’s impact on the markets and economy can be devastating.

Millions of Americans are under stress as prices on, well, everything soar.

The “silent killer of wealth” – which is my cute little nickname for inflation – inflicts massive pain on consumers, causing demand destruction …

However, a must for central banks is to use their tools to stabilize rising prices

That means in times of high inflation they will sacrifice growth … which sends stocks into a bear market.

But don’t fret!

I’m going to show you how to turn an equity bear market into a major advantage for building generational wealth …

Click here to find out why dollar cost averaging (I’ll explain!) is THE anti-inflation strategy that allows you to prepare for an outstanding quality of life in the years ahead …

What DCA Can Do for You

Trying to time the market can cost you dearly …

But dollar cost averaging is a great strategy to manage price risk in a bear market.

Instead of investing in a particular stock at one time (with a single purchase price) dollar cost averaging allows you to divide up the amount of money you’d like to invest and buy small quantities over time at regular intervals. 

This decreases the risk that you might pay too much before market prices drop.

This is especially true for today’s bear market, because we are entering a long period of inflation, which is very bearish for stocks and bonds. 

How DCA Works 

Dollar cost averaging takes the emotion out of investing because you purchase the same small amount of an asset regularly.

This means you buy fewer shares when prices are high and more when prices are low.

For instance, say you plan to invest $1,200 in an ETF each month. You have two choices: You can invest all of your money at once at the beginning or the end of the year – or you can invest $100 each month.

If you spread out your purchases in $100 monthly portions over 12 months, you may well end up with more shares than you would if you bought everything at once. 

In the example below, dollar cost averaging buys you more shares at a lower price per share. When your investment  increases in value over the long term, you’ll benefit from owning more shares.

Here’s the breakdown:

– If you bought $1,200 worth of stock at a price of $10 per share in January or December, you would own 120 shares.

– If you bought $100 worth of stock a month for 12 months, your average price per share would be $9.58, and you would own 125.24 shares.

Maintaining investments during market dips can be intimidating. Regular DCA investments ensure you invest even when the market is down.

 

Remember: If you stop investing or withdraw your existing investments in down markets, you risk missing out on future growth.

 

Stocks to Consider During the Market Correction

 

Stocks that you should consider purchasing in a bear market using the DCA strategy are quality, profitable companies that distribute dividends that will add to the number of shares you own over time. 

 

Another way to boost your income is to do call writes – which is a strategy where you can sell calls just above the market as your stocks become overbought.

By applying this strategy you further increase your income. If the stock is called away – meaning the stock price expires above the option strike price – you sell the stock at an advantageous price and take your profit.

 

If it is not called away, you can take the distribution in extra shares and reinvest them, further boosting the number of shares you own. 

 

Here is a list of stocks to consider – be sure to research! – as additions to an income producing portfolio that you apply the DAC strategy to. The dividend column shows the annualized percent gained for each dividend distribution you receive. (Dividends are generally distributed quarterly.)

 

 

Bring It Home

 

Thursday’s trade revealed a continued nervousness in the market as shares were heavily sold at the end of the day. We may see an increase in volatility next week that will attract more real money selling of stocks, and traders buying puts and selling calls to protect their holding.

 

When you apply the DCA strategy, you are rooting for lower prices because you are looking to build income for life to guarantee you live the highest quality life possible.

 

If you want to learn more about the macro forces driving the bear market subscribe to Power Income Trader and receive all the trades I do directly, plus get access to the portfolio I apply the DCA strategy to that will build generational income for you and your family. 

 

Have a great weekend and as always …

Live and Trade With Passion My Friend,

Griff