If 2022 taught us anything, it’s that we need to swing our portfolios away from this:
We’re Fading “Cardiac” Share-Price Action Like This …
That’s the chart of “America’s ticker”—the SPDR S&P 500 ETF Trust (SPY)—last year. I call SPY “America’s ticker” because it’s by far the most popular way to track the S&P 500.
But its popularity does not translate into safety. Just holding this simple index fund last year meant taking a 20% haircut—with plenty of heart palpitations along the way! That’s why we want to shift our portfolio returns toward the smooth and steady growth of dividends:
… And Toward the Serene Upward Drift of Dividend Growth
That’s more like it!… Read more