Its Over, page-11671

Mainstream mantra has made retirees believe they must rely on yield to fund their retirement, but that’s just one part of the equation…if your yield is decent but you suffer a protracted capital loss what good is that, eg someone who held Telstra since 1 Jan 2000 would still be experiencing a 48pc capital loss, so your high dividends comes straight from your capital…you could have just lived on your capital and worry less about yields. Yield seekers are your classic Buy and Hold investors, as long as dividends are good, they won’t sell even when stocks have climbed significantly because then they worry about CGT , failing to recognise that stocks go through cycles of boom and bust. Stay the course could cause them to end up like holding an AGL, IAG , and perhaps worse some yesteryear stocks that become legacy and losing relevance in the marketplace like AMP. Funnily despite all the woes inflicting their Buy and Hold stocks their loyalty is unwavering to the very end.
It all says that Belief, right or wrong, determines our actions or non actions. Yet in modern day markets , being fixated and inflexible is something we should avoid…what worked in the past may no longer hold water…and if things change we too must adapt and modify our behaviour and actions.
We cannot be bull forever nor bear forever , as There is A Time and Place for Everything.