Words From The Wilds

Changes need to be made in our thinking in order to survive as investors in this topsy-turvy world of late. When all of this downturn started last year, I vowed to maintain my positions on the holdings I had in my portfolio. Every time I have done this in the past years (to be safe), I generated many actual losses that would have been fine as paper value losses had I retained the holdings. This time I am increasing my holdings through use of a DRIP (dividend re-investment program). This is a time when the units of the particular trust have started a small recovery but have much value left to recover. In this way, I can accumulate more units without the cost of transaction fees, which are absorbed by the trust company itself. What this means to me is that even with small $ value of dividends being received, I can still acquire more units each month which will increase the dividends received for the following month, which will facilitate the purchase of more units, and so on. This is a low-cost, albeit slow method for rebuilding value in my portfolio without injecting more of that hard-to-get cash, and risking even greater losses if the global economy continues to weaken.