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.
Overview
When an investor buys a stock, the last thing they want is for that new pick to start falling. It's difficult emotionally to see a position immediately sink to a loss, and to realize that if you'd waited, you could have gotten a better price. But it's more important to remember that nobody can reliably time the market, and that trying to is actually a losing strategy.
Since it is unlikely that you will consistently buy stocks at cyclical lows, if you're a dedicated investor, experiencing a drop of 10% or more shortly after you buy won't be unusual.
Details
One key to managing that type of disappointment is to stick to stocks in which you have long-term conviction. Personally, I have held shares of Realty Income (NYSE: O) in my portfolio for some time. And over the past month, that stock has slumped by about 10%. However, if I didn't already own it, I would still invest $5,000 in it today, and here's why.
Source
Originally published at www.fool.com.