As I’m sure all of us are aware, the U.S. stock market’s been more or less a rollercoaster this last week as panic over a new COVID variant seemed to really spook the market. Last Friday the Dow Jones plunged over 900 points and the S&P 500 wiped off over 2% of its value. That trend also continued Tuesday with another big selloff. The primary reason for all the chaos is because investors worry that this new strain could lead to more lockdowns, restrictions, and overall more difficulty for businesses leading to slower growth.
While we don’t know what the future holds or if the market will continue to decline in the coming days, weeks, or months, we do know as investors is that any time there’s a sharp decline in stock prices like this, that means that practically everything is on sale. For people for are pursuing a passive income strategy by investing in stocks and ETFs, we actually don’t care about whether or not a stocks share price goes down. The only thing we’re concerned about is if there is a dividend cut. That’s the absolute worst situation if you’re trying to live off dividends. In fact for dividend investors, a falling share price is actually a good thing. Because during periods where a stocks share price falls, that means we’re able to buy more shares of a company for less money.
So in todays video I’m gonna discuss some types of stocks as well as certain companies that I personally love to see dips in their share prices so that I’ll hopefully be able to pick up more shares of it at a discounted price.