Our DD passed this along to us, thought I'd pass it along....

[Lynn49]

It explains bear markets and why we're in one now and other useful information...just fyi...

https://www.thebalance.com/u-s-stock...veries-2388520

[walkonby]

Nail biting ( and worse ) can have investors jumpy when they see their savings dwindle every day. This is just a calm reminder that the markets ebb and flow. Lose yourself inside a good book or binge a series on Netflix, Amazon Prime, Disney+ or any other of a gazillion streaming services available. until it corrects itself.
ty @Lynn49 for posting.

[Lynn49]

Nail biting ( and worse ) can have investors jumpy when they see their savings dwindle every day. This is just a calm reminder that the markets ebb and flow. Lose yourself inside a good book or binge a series on Netflix, Amazon Prime, Disney+ or any other of a gazillion streaming services available. until it corrects itself.
ty @Lynn49 for posting.

You're welcome, @walkonby , yes, she does have clients I'm pretty sure she has to retrieve from the ledge, lol, but this is a buying opportunity, and all good things come to those who wait.

[brunt]

Bear markets make for some interesting possibilities. This is particularly true if you consider dividends rather than the potential for capital gains (which can be substantial as well).

Consider CIBC (https://finance.yahoo.com/chart/CM.TO). Its price has fallen to $63.73 as of today (June 17, 22). If you check out its dividend history, it is currently paying out $0.805 per share in dividends. Four times per year, that makes $3.22 per share in dividends. This share would cost you $63.73 to buy, meaning the dividends return 5.05% annually (4x$0.805/$63.73).

And it pays this dividend out every year. But even better, it will increase over time, as bank profits increase. And even better than that, dividends are taxed at roughly one half of the rate of interest income. So if you are in a higher tax bracket, dividends are a crazy good deal. And even if the stock price goes down in the future, there is an extremely high probability that the dividends will remain the same.

This is far better than annuities. Annuities lock you in for life, stocks you can resell if you find a better place for your cash, frequently at a profit. Annuities tend to have a fixed payout, dividends increase. When you pass, annuities stop paying (other than if you get ones that pay out less for survivorship of your spouse, or minimum number years payout), but stocks can transfer to your heirs upon death.

The entire reason of saving and investing money is to create an income stream. This is one of the best ways to do it.

Now, of course before anyone beats me up by saying that you shouldn't try timing the market, that is true to a large extent. But if you ever need an extra push to get in there, a bear market is often the best one.