"Safe" Redefined

I read an article today about how 45 of the S&P 500 stocks have reduced or completely halted their dividend - such stocks as Disney, Ford, Delta, Invesco, GM, Raytheon, Weyerhauser, etc.

The Bond Market is no better: https://www.marketwatch.com/story/why-are-bonds-failing-to-a…
This counterintuitive action blows in the face of the widely held expectation that U.S. Treasurys would remain a port of shelter from the plunge in equities, driven by the COVID-19 pandemic’s rising number of cases in the U.S.

And yet here we are, seeing our “risky” and “over-valued” and “speculative” stocks consistently growing for years. As Saul has pointed out numerous times, true financial safety does not come from so-called “safe” investments. The inevitable drops, even when large, of our stocks are easily outweighed by the increasing value that our companies provide and for which they are rewarded. Meanwhile, those accepting heavily reduced growth for perceived “safety” are seeing their incomes decline.

Yes, these are unique times, but isn’t that supposed to be the whole point of “safety”? So when the Black Swan’s excrement hits the fan that is recirculating suspended virus droplets amongst mask-wearing investors, our money remains safe and secure? That this isn’t happening today is proof positive that taking the “safe” way out is anything but.

Our muscles atrophy if they aren’t used, and similarly, our money needs to be in companies that are working hard to grow. Yes, keep a cash cushion to get you through the inevitable downtimes, but don’t go running to dividend plays or bonds - they are proving to not be as safe as many have thought.

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