How to profit when the market drops #investing #strategy

Day 121 of Investing Every Trading Day, And We’re Closing In on $20,000! Our VTI investing challenge is now worth $19,255.82, which means we could potentially break through our next goal of $20,000 next week. Today was finally a green day, with VTI gaining roughly half a percent. But when we zoom out and look at the last five trading days, the stock market is still down from the highs we saw earlier this week. One of the biggest things I’m watching right now is the bond market. Earlier this week, the U.S. Treasury Department increased its bond-buyback program in an effort to calm rising Treasury yields. That provided some temporary relief, but yields have since moved higher again. Why does that matter? Higher Treasury yields can eventually translate into higher borrowing costs across the economy, including: 🏠 Mortgage rates 🚗 Auto loans 💳 Credit cards 🏢 Business financing Reuters notes that rising Treasury yields can squeeze households, businesses and financial markets by increasing borrowing costs. That could become a headwind for companies that depend heavily on consumer spending or affordable financing, including retailers, mortgage companies and auto-related businesses. For our strategy, though, short-term volatility can create opportunity. We’re using the Averaging Down strategy, which combines: 1. Dollar-Cost Averaging - investing consistently 2. Buying the Dip - investing more when VTI falls If the market rises, our existing investments participate in the gains. If the market falls, we get another opportunity to buy shares at lower prices and potentially lower our average cost per share. Want to Start Investing but Don’t Know What to Buy? I made a video breaking down several different types of index funds and ETFs you can research for a long-term investment portfolio. That video: https://youtu.be/UR6gqeq9RbI 👉 Watch that video next, subscribe to follow our push toward $20,000, and I’ll see you for Day 122! Blake Alewelt Shieldline Finan