Saturday, March 6, 2021

Rotations

The stock market is kind of a crystal ball. It prices itself based on what the majority of investors and traders *think* is going to happen. Now that vaccinations are up and cases are down, money is leaving tech/entertainment (and others) and rotating into energy/travel (and others). I haven't noticed too much rotation out of consumer staples... yet. While I don't expect any shocking changes to this path (the establishment is back in power), if any happen I'll try to buy up what I can while blood is in the streets. 

 I think much of this "reading of the future" is also the expectation of a democratic congress passing another bailout bill, and a possible positive jobs market report-which should be only natural as everyone goes back to work. 

 The housing market is starting to bother me a bit. We are definitely seeing a bubble, and rentals/leases are going to have to have a day of reckoning soon. I'm glad I bought my latest house when I did, as it has gone up 20% in only two years, but I don't know if I can expect it to maintain that much longer, or even continue to increase. Not that it matters, I don't plan on selling - I expect this to be my last home before the old folks home!

Big homes require more upkeep than I'm willing to expend energy or money on. But I digress... 

 I have hit another benchmark, attaining over $700 a month in dividends ($711). The benchmarks are still slow, but happening sooner. I still remember hitting $600 a month. Meanwhile I am finishing up getting my home ready for retirement in under 4 years, while putting everything else in dividend stocks. Bills that I can pay ahead are paid to the end of the year, which helps, and no debt whatsoever. I have found that having a nice chunk of cash on hand to "borrow" from myself is quite helpful. Not only can I get large ticket items last minute, but I can also take advantage of a crash when it happens. I'm not quite sure what the magic number is to have on hand, but I think having enough for a quick small car purchase is best (low 5 digits). 

Government checks have been amazing for the market, and for my personal retirement prep. I am not a fan of them, as inflation is a shadow looming over the USA, and only a fool would stick it in a savings account or mattress. The best way to keep up with, and ahead of inflation are dividend stocks, as they are usually raising their dividends on par with, or ahead of inflation. At the same time the effect on the dollar is reflected in share prices. So make your money work for you... Don't sit on it, don't buy a depreciating asset with it (like a car - Uber instead). 

 So my advice is this: If you *need* something (food/home/transportation) get it. Then, if you have debt, pay it off! If you need a vacation, make it cheap (RoI)! Next, invest it. Appreciating asset, small business (things are about to open up), growth stock, or best of all, a dividend stock. And if you are so rich and retired, then gamble on crypto, meme stocks, or Vegas, but I wouldn't do those, even if I was rich and retired. There's so many ways you can give back instead. 

Dividend Increases & Special Payouts

February Purchases:

HD 13

OKE 6 

WTRG 15

XEL 10

ABBV 3 

MCD 2 

WEC 5 

APD 3 

IP 55

JNJ 4 

HRL 6 

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