These past few months, I’ve been saving my money and just using the dividends I’m receiving to pay off my margin loan because I think the market is quite high now and due for a correction. I also haven’t added any new positions or purchased any shares of the stocks I already hold for the same reason. Except now, I’ve basically paid off my margin loan, my emergency fund is fully funded and I’m just collecting cash, both in my brokerage account and in my regular bank account from my job here in Korea. That really is no problem, except that the market keeps going higher and higher, without an end in sight and when my money is earning less than 1% interest, it’s not being put to good use.
Which makes me consider buying quality companies, even when they’re more “expensive” than I’d like them to be. Buying a company like Coke, Mcdonalds, Procter & Gamble or Chevron is not terrible at this point because these companies will keep increasing their dividends year after year quite reliably, and their earnings will keep increasing as well. My only hesitation is that if I waited until a big pullback, I could pick these stocks up at extremely cheap ratios, which means that when I sell them at some point in the future, my profits will be even bigger.