Is it too late to get into NVDA? (and no one quits smoking during a recession)

by | Mar 1, 2024

Fear of Missing Out (FOMO.) It’s a strong emotion.

Strong enough to make a sane person do some pretty crazy things.

If you’ve watched NVDA from the sidelines over the past 18 months, you’ve probably felt FOMO.

I mean who wouldn’t… Look at this chart.

Since starting it’s meteoric rise in October 2022, the stock has jumped from about $114 to where it currently stands at over $790 today.

As it marched steadily higher, you probably felt like it was too late to get in.

But then it marched even higher… and again you might have felt like you missed out.

At this point, if you’re still watching from the sidelines you might be feeling the tug to finally jump in. 

Is that a crazy idea?

I’ll be brutally honest: I don’t know.

 

My thoughts on NVDA

I’ve seen stocks called “overextended” continue to go up for months or years… And that happened with NVDA.

Just look at these headlines.

What I can tell you is that I’m holding NVDA. I’m a believer that the market is still bullish until it proves otherwise.

But I can also tell you this: I probably wouldn’t be buying it right now if I wasn’t already in it.

In other words, I am not the guy who is going to declare that NVDA is ready to crash and burn, but I am also not the guy to say “it’s just the beginning” and recommend going all in on NVDA.

In this kind of uncertainty, I don’t guess. Instead, I turn to where I do have a high conviction.

See, I have a much higher degree of certainty that the 20 to 30 dividend tickers I’m holding at any given time will continue paying cash automatically — no matter what happens next in the market.

In fact, I consider dividends to be so safe and hands-off that this what I think of as my “generational wealth” portfolio.

It’s money I never even plan to use.

Because my goal is to leave it to my kids… and their kids.

It’s the kind of “mostly hands-off” portfolio that I can handle in a few minutes per month as I pass that knowledge on to the next generation.

These tickers I’m holding paid out during the 2000 DotCom meltdown.

They paid out during 2008 when high flying stocks were burning to the ground.

And they even paid out in 2020 covid crash — the most uncertainty we’ve ever seen in the market.

Do you remember what it was like watching stocks drop more than 30% in a month?

And still these dividend stocks I hold paid out — and most of them have even consistently raised their dividends through all of those market meltdowns.

Take for example, the tumultuous period of the 2008 financial crisis.

Certain dividend-paying stocks not only continued to pay out — but also demonstrated resilience in the aftermath.

For instance, Altria Group (MO) and Southern Copper Corporation (SCCO), both known for their consistent dividend payments, managed to navigate through the crisis effectively, and paid folks to own them the entire time.

By contrast, some top growth stocks fell off a cliff.

Like former high-flyer American International Group Inc (AIG).

In a period of just 18 months, it lost 97% of its value. And 15 years later, it still hasn’t recovered:

Or consider Genworth Financial Inc (GNW). Another of the worst-performing stocks in the S&P 500 during the Great Financial Crisis.

This stock plunged 95% in 18 months, before bouncing up… and finally settling around 82% down from it’s pre-crisis levels:

Obviously I’m giving you some extreme examples of how bad high flyers can perform in a crisis, but I think you understand my point.

The common wisdom is that the stock market mostly goes up.

But pick the wrong high-flying stock… and you can still be waiting 15 years later for it to recover back to breakeven.

In fact, despite rapid growth stocks getting all the attention, just a handful of strong dividend stocks represent nearly HALF the entire growth of the stock market the last 100 years.

And I believe in them so much that the majority of my personal portfolio is in 20-30 dividend stocks that have paid me — and will continue to pay me — through thick and thin.

Now, here’s the question I generally get at this point:

“Don’t you feel like you have missed out on the super growth stocks over the past year?”

And the answer is simple: I’m NOT missing out.

I still trade high-growth, fast-moving stocks. I just do it with my smaller accounts.

Because, let’s be honest, in fast moving markets, you can generate some pretty extraordinary returns with smaller accounts using options.

I really enjoy this, because it lets me step into the ring with a featherweight budget, but allows me to swing like a heavyweight.

By using options, I’m able to use a small sliver of cash to control a block of stocks that would otherwise break the bank.

This is important because it means I can keep MORE capital working in my dividend portfolio earnings payments. So I’m getting the largest passive income stream possible while still leveraging more aggressive strategies on fast moving stocks.

By the way — the fundamental view that high-flying growth stocks are the only way to grow is plain WRONG.

Because if you zoom out 20+ years, dividends stocks ARE growth stocks.

Now, if you think this is a shameless plug for my dividends workshop, you’re right.

I believe so strongly in dividends that my personal money is heavily into dividends.

And I believe everyone should be, too.

So to help you get started, I want to share with you my top 7 dividend stocks you should consider jumping into right now.

Because even if NVDA — or the market as a whole — comes crashing down, I expect these tickers to continue paying out through thick and thin.

To get you started, here’s 1 of the 7 tickers I want you to consider:

With the uncertainty about when this market melt-up will end, Altria Group (MO) is one of my top stocks.

It’s one of the stocks I mentioned that paid out — and have consistently raised their dividend — through the meltdowns of the last 30+ years.

And even while it’s taken some lumps as a tobacco company being subject to regulation…

If you zoom out over the years, it’s established itself as a major growth stock, even when you DON’T factor in the dividends.

And for my money, it’s as safe as I can expect to get in the stock market.

Because if you’re worried about a true recession collapse, you should know that people don’t quit smoking during recessions.

So that’s one stock I’d consider.

I’ve got 6 more for you inside my free workshop (actually I think it is more like 9 additional). 

Click here to access my Dividends Forever workshop right now.

— Nate Tucci

WRITTEN BY<br>Nathan Tucci

WRITTEN BY
Nathan Tucci

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