Meet the 1 Stock I'd Buy With $5,000, Even If the Market Fell 10% Tomorrow
A reliable monthly dividend can ease the sting of a falling share price.
Investors often fear losing money when they purchase a stock, especially if the investment declines shortly after the purchase. This is due to the emotional difficulty of seeing a growing position immediately turn into a loss, and the realization that waiting might have allowed for a lower entry price. However, it is crucial to remember that no one can accurately predict market movements, and attempting to do so usually results in poorer outcomes.
Given this, it is unlikely that an investor will successfully buy stocks at their cyclical lows, making it normal to experience a drop of 10% or more in the short term after acquiring a position.
To help manage this disappointment, it is essential to focus on stocks where an investor has strong long-term conviction. In this case, the author has had shares of Realty Income (NYSE: O) in their portfolio for some time and has been holding onto them despite a recent 10% decline over the past month. Despite this recent drop, the author would still invest $5,000 in Realty Income today, and here is the reason why.
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