In March 2021…
In March 2021, I reflected on the nervousness pervading international stock markets. Tech giants like Amazon had begun to lose ground, and even stalwart consumer goods manufacturers such as Unilever, Procter & Gamble (P&G), and Church & Dwight were experiencing declines. At that time, I expressed confidence in P&G’s enduring strength, noting:
“I’m looking more closely at Procter & Gamble stock shares right now. The company is fantastic.”
Looking back, it’s striking how timeless that sentiment feels because here we are again, facing new uncertainties with some old lessons to remember.
Current Market Challenges
Fast forward to April 2025, and the markets are once again facing turbulence. Recent developments, including the announcement of new tariffs by President Trump, have introduced fresh uncertainties and spooked investors across the board. Sectors that were once considered safe havens are wobbling, and many portfolios, mine included, are flashing more red than green.
And yes, such policy shifts can have immediate impacts on investor sentiment and market stability. Tariffs aren’t just a headline risk. They ripple through earnings forecasts, supply chains, and investment theses. What was once priced for global expansion is now subject to geopolitical fragmentation.
For me, the foundation of investing has always been the United States. Not just as a market, but as an idea: open society, free enterprise, a fertile ground for innovation. High-risk founders, bold capital, explosive rewards. That cocktail built the tech giants, the disrupters, the wealth engines of the last decade.
But lately, that narrative feels shaky. The United States, once the poster child of global capitalism, is turning inward. The trade wars, the tech restrictions, the politicization of capital flows. It doesn’t feel like a simple glitch in the system. And that’s not a political judgment. I don’t care much about red or blue, left or right. What I see is a structural shift that investors can’t ignore.
It’s just where we are now. A different world. One where the investor playbook I used to swear by may need an update. Where assumptions I never thought to question are suddenly on shaky ground, and staying passive feels riskier than staying curious.
And the only thing worse than a market crash is not realizing the rules have changed. That quiet danger, failing to adapt, can do more damage than any correction on a chart. You don’t lose your edge all at once. You lose it by assuming the old map still fits the new terrain.
Not once in my investing life have I seriously thought, this time it’s truly different. But now, I am pretty close to calling it. Or at least to admit that the dynamics feel different enough to warrant deeper reflection.
So, is this a new system now? And if so, what does it mean to me as an investor? I honestly don’t know. But on the other hand, investors always forget that discounts are only available when it hurts.
In times of euphoria, favorable opportunities are rare. True bargains arise in moments of fear and uncertainty, when sentiment detaches from fundamentals and prices become emotional rather than logical.
Phrases like “buy when the cannons thunder” or “buy when there is blood on the streets” are to be taken literally. But they’re hard to live by in practice. The noise is loud, the fear is contagious, and the urge to act is overwhelming, even when inaction is often the smarter move.
Reflecting on Past Insights and Experiences
Looking back at my 2021 observations, it’s evident that market fluctuations are a constant feature of the investment landscape. I wrote:
“A crash is something quite normal in the stock markets. It happens again and again. It doesn’t unsettle me, but I expect it at any time and visualize its impact.”
That mindset hasn’t changed. If anything, it’s become more valuable. A way to stay grounded when everything around you screams for reaction.
This perspective remains relevant today. The cyclical nature of markets means that periods of growth are often interspersed with corrections. Recognizing this pattern is crucial for maintaining a long-term investment strategy and for not confusing noise with signal.
Why I Still Trust Procter & Gamble
Amidst current uncertainties, P&G continues to demonstrate resilience. The company recently announced a 5% increase in its quarterly dividend, raising it to $1.0568 per share, after it hiked the payout by 7% in 2024, 3% in 2023, and 5% in 2022. This marks the 69th consecutive year of dividend increases, a level of consistency that’s rare. Currently, the P&G stocks offers a dividend yield of 2.67%.
P&G’s strength doesn’t lie in flash or hype. It lies in execution, in pricing power, in products that people buy no matter what macro headlines dominate the week. It is, in many ways, the textbook example of what investors mean when they say “quality.”
Historically, P&G has weathered economic downturns with notable stability. During the 2007–2008 financial crisis, while the S&P 500 declined by approximately 51%, P&G’s stock experienced a more modest decline of around 30%. This relative resilience makes the stock not only a hedge against chaos but a quiet compounding machine over time.
The Power of Dividend Investing
Incorporating an income-focused investment approach has been a cornerstone of my financial strategy, providing both stability and growth over the years. By prioritizing dividend-paying companies like P&G, I’ve cultivated a portfolio that generates consistent cash flow and income that compounds, buffers volatility, and reinforces long-term financial security.
P&G’s latest dividend hike is not just a nice-to-have. It’s a sign of confidence and strength. Dividend growth investing works best when it’s boring, consistent, and automatic, and that’s exactly what P&G has delivered for decades.
Dividend-paying stocks, particularly those with a history of consistent increases, tend to exhibit lower volatility. They pay you to wait. They offer tangible returns when the market isn’t offering clarity. And when reinvested over time, those payouts become a force of compounding that’s often underestimated.
This approach also aligns with the deeper goal of financial peace of mind. I don’t invest to gamble. I invest to sleep well at night, and for that, income-focused investing remains the most reliable strategy I know.
Conclusion
Market volatility, influenced by policy shifts, inflation concerns, and geopolitical risk, is an inherent aspect of investing. Trying to avoid all drawdowns is like trying to cross a river without getting your shoes wet. It’s not realistic, and it misses the point.
But companies like Procter & Gamble exemplify how strong fundamentals and consistent performance can provide a buffer against such uncertainties. They are not immune, but they are built to endure.
As investors, our job isn’t to predict the future. It’s to stay clear-headed, long-term-oriented, and honest about what kind of risk we can truly live with. And above all, to remember: it’s during the uncomfortable moments that the seeds of future returns are quietly planted.
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