Dividend Investing

Portfolio rebalancing is a strategic process that involves adjusting the proportions of assets in your investment portfolio to maintain a target allocation. Over time, the value of your investments can shift due to market fluctuations, which may cause your portfolio to stray from its intended balance. For example, if stocks outperform bonds, the equity portion of your portfolio might grow beyond the desired level, increasing your risk exposure.

As we approach the final weeks of 2023, the S&P 500 appears poised to end the year with a gain, albeit still below its peak in December 2021. Investor sentiment in 2023 was marked by caution as equity markets recovered from losses in 2022, with a notable uptrend until August. Following a three-month decline, a return to upward momentum was observed in November and early December.

One person wants to save for retirement 25 years. Another wants to invest in various instruments for no longer than a year. These investors have different goals and investment timing, which means different market behavior. To avoid placing in rash positions, everyone needs an investment strategy. In this article, we will consider what that is and learn popular types of investment strategies.

One of the most tempting goals of investing is passive income. It is the investment income that encourages many to invest. In the case of shares, passive income can be obtained in the easiest and most reliable way. It is, of course, the payment of dividends. Thus, it is possible to speak about dividends as a secondary target or as a separate strategy. In the latter case, there is such a direction as dividend investing.