I started writing a post about dividend investing research and then realized that how could I with good conscious write about anything other than my feelings about the market.  While I love preforming my own analysis I don’t pretend to be an “investment guy” and  that is probably the reason that despite my obsession with my small Dividend Income Portfolio I have most of my money invested in Cash, ETFs and Mutual Funds (index and active).

Additionally, I intend on purchasing more “buckets” as I become more and more established (these buckets are likely to include more whole life insurance, an annuity, real estate, etc.).  While there are tons of resources for one to buy gold coins it is one bucket I haven’t looked into too much yet.

In fact, I am probably too risk adverse for 29 years old, but I digress.

It is likely that once can blame it on the current state of media but it seems that people often lose site of the market in anything longer than 90 day intervals.

Screen Shot Dow Jones Industrial from August 1, 2011 to August 5, 2011

DowJonesIndex 5 Days

Down 5.75%.  Ouch.

Screen Shot Dow Jones Industrial from July 5, 2011 to August 5, 2011

DowJonesIndex 1 Month

Wow Down 10.02%

Screen Shot Dow Jones Industrial from May 09, 2011 to August 5, 2011

DowJonesIndex 3 Months

Down 9.45%

Screen Shot Dow Jones Industrial from January 3, 2011 to August 5, 2011

DowJonesIndex YTD

Wait, a minute only down 1.15%?

Screen Shot Dow Jones Industrial from August 9, 2010 to August 5, 2011

DowJonesIndex 1 Year

Up 7.43.

My Point?

You should know and understand your risk tolerance, and be involved in equities with the knowledge that down turns and periods of stagnant growth are not only known risks but actually expected from time to time.

Update: Monday August 8, 2011 9:30am the moment before I am going to publish this post: Market is down another 200 points to around 11,200ish.

All screen shots taken from Google Finance. Picture by Clover_1.