17 Jun

Empire Avenue Tips

Things have been chaotic on Empire Avenue for the last week or so since we began experiencing the affects of changes in the way EAv calculates dividends.  Today it seems more stocks are down – and down big – than I’ve ever seen before.  In the same way that individual stocks spiral downward (negative share price causes selling which causes the price to drop which causes more selling) today the entire market is spiraling downward.

This mass sell-off is self-defeating. Think about it… if you sell 10% of the value of your portfolio because share prices are dropping and then invest in other stocks, you’re going to pay a 5% selling commission + 5% buying commission = 10%, so you will lose 1% of the value of your portfolio. If everyone does this, there would be 1% less wealth in EAv and on average everyone’s shares will fall 1%. This will perpetuate…

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