Several years into would be much better as his original purchase would then buy more shares.
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Dear god the quality on this forum has deteriorated. SailorRob, please do not procreate.
Yep hindsight is great. Time will tell.
If it is a blip Bull....; then the next rally has to go past long term interest rates (10 year) previous high of 4.59% on June 19th as of today it is 3.8% and still falling.
Two things of conflicting interest at the moment..
1..The media is still beating "the rising interest rates in NZ" drum when clearly it has been falling for the last 2 weeks" See interest.co.nz..Peoples expectation is for interest rates to keep on rising.
2..The market could be having a breather or it could be that there is a yet to be confirmed recession and this is having a down pressure effect and the Market interest rates have topped out.
One dilemma thing.
1..The market rates are close to inverting..Will the Reserve Bank want to continue hard and fast raising of the OCR and possibly cause inverting the Market yield curve...Does it matter?
Is this just a NZ thing?
No The US 30 year Treasury rate is falling (not in a down trend to date).. so are the shorter term rates (2 year rate).
If you're not excited about a once in a long time depressed equity prices, and you're a long term investor then you're not paying attention to the market that's gifting you entry and top up prices that come around very infrequently. The traders that are focused only on capital gains/losses can do whatever they want, it's not relevant to us.
Periodically the market price guts itself on fear or whatever, it doesn't really matter what that whatever is. It's gifting you low entry equity prices. The only decision is whether you accumulate what you've already got, buy in to something new, or wait a bit longer in case those equities are cheaper later on.
You're inherently buying free cash flow distributions for X years, it's as simple as that. Get your head around that and you'll understand long term. Match that with patience and you'll be successful. The cheaper you do that, the better off you will be.
You've never made a a loss unless you sell at a loss. Long term profits are realised on long term positions, that means you have have no intention to sell and your paper position is of no matter or consequence as the earnings flow into your bank account.
One day your earnings will have fully paid for your your capital investment, and from then on it's gravy.