Beat the Market by Buying the Big Dipper

Do not try to stock pick. Do not try to time a specific stock. Do not try to time a big market-wide dip in advance.

But do have a cash fund within your brokerage account.

Do put small amounts in to build up your cash fund if you are youthful and employed, and have more income than you need.

After you can plainly see that the market as a whole has fallen off and cliff and is plunging to rock bottom levels, then slowly and carefully feed cash into JNJ, PG, O, KO, SO and other reliable dividend paying stocks.

The lower they go, the larger amounts of cash you feed in to buy them.

You do not know when the plunge to rock bottom is going to stop and turn around.

The knife is falling. Do not try to catch is by the handle.

Be happy with buying income stocks at levels way below where they should be.

Be happy that your return on investment will be greater than it should be.

After you have done what I said, your cash fund, inside your brokerage portfolio will be at zero.

But you will have a portfolio of income stocks.

And over 5 or 10 years, or maybe 20 years, your cash fund will come back up, since your income stocks will give you dividends and pay for themselves.

At which time, you will have your cash back, and you will have the stocks, which you can sell if you like.

You are cordially invited to scram and never read another of my posts. If you say an unkind thing, I will block you, and you not have to suffer the pain of reading my posts.

If you are young, you might take a look at how I did OK.

You could do OK too.

I was 20 when I began my plan.

If you are 20 now, you have time to make it work.