My emergency fund was rather different than most people recommend. Rather than a bank account with money, I had a trading account with dividend growth stocks. Dividend growth stocks are ones with low yields, but high dividend growth.
I figured that if this portfolio could not produce enough income, I could trade them in for stocks with higher yields (and lower dividend increases). The theory on this was that tough times were probably come with a depression in the stock market. So, yes, I would be selling stocks low, but I would also be buying stocks low.
I think that selling low and buying low is better than selling high and buying higher. I think that with the former case I would be better off than in the latter case.
On my other blog I am today writing about Superior Plus Corp (TSX-SPB, OTC-SUUIF)... continue...
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