Columbus Day 2021

 So here we are, October 11, 2021.  What a year!

Today is Columbus Day in the United States.  Monday, I have lots of cash transfers from my bank to various brokerages and of course, though the markets are open no bank transfers will take place until tomorrow.

Sadly, the markets are going up this morning. That means that I will not be buying some of the stock that I was hoping to buy, because my cash is in limbo. Waiting in that no-man's land between bank account and delivery to brokerTheage.

The Columbus Day holiday is possibly the most confusing in the repetoire of Federal Holidays in the U.S.

In some ways it is a holiday, in others it isn't.  Some public organizations take the day off. The Bond markets and some banks for instance.  The stock market, well no to hell with looking to have a break, let's make money.

It is not a problem for me.  I don't mind people having a day off, but what is annoying that even computer systems in the U.S. get the day off too.  If all of my banking information is held on computer and all of my brokerage information is held on computer, how come those two computers cannot talk to each other on a Federal Holiday?

It makes no sense.

Well possibly it does make sense to American legislators, who take a break at the drop of a hat.

I always wondered in my time working in a public library here in California, the end of March has a Cesar Chavez day.  Famed agricultural workers leader, his name now marked as a state holiday for state and local government employees.  Who can drive into the mountains or drive to the beach, passing all those farms, orchards, vineyards and fields bustling with migrant farm labor working hard on a day set out to celebrate their deceased leader, a holiday which means only a day off for people who hardly know the difference between a lettuce and a cabbage.

Plus of course the computers get that day off too. When contacting anyone in California.

W

What am I Wanting to Buy Tomorrow?

I am hoping to buy a new stock, it is Horizon Financial (HRZN ). Horizon specialize in lending to technology businesses in the first stages of growth.

They pay a monthly dividend of just 10cents as of October 11, 2021.  A stock which changes hands around $17.00.

I am only going to look at buying a small portion of my holding right now. Analysts are looking at a future price more in the region of $14.00, presumably as interest rates rise that will put a squeeze on this stock.

I like the look of the stock for cash flow.  10 cents in my pocket every month per share is going to add nicely to my monthly cash flow for general stock purchases.

Another stock I am looking to add to in my portfolio is Community Heathcare Trust ( CHCT ) this is a quarterly paying REIT.  Over the past five years the stock has moved very little price wise, staying stubbornly around $40  but it has thrown off some nice cash flow with regular dividends.

I like this one because people will always need hospitals and doctors offices.  Exactly what this REIT owns all across the U.S.

That is all for today.  See you again soon.

 

 

 

Sequoia in the snow card
by Bretsuki

Scared of Heights? Stock Market at New Highs

 Over the years, I have often been scared in the market.

You see I don't like heights. Both in the real sense, standing near a sheer drop makes me sick, and stock market highs make me  frustrated as the number of stocks that I am willing to buy dwindle.

Now is a time when I just look at the market and weep. 

I can't really buy very much.

I am happy that my stock portfolio is increasing in value. An 11 percent rise in the S&P this year is good, one of my portfolios has increased by 10per cent, another by 12 per cent and my M1 portfolio has grown 18 percent.

See my M1 portfolio here.

If you like M1 why not open an account using the link above. When you open an account and fund it with $100 you will receive a $30 cash bonus to invest from M1. That is a 30% boost to your portfolio, straight away. Just for using my link.  I will also receive a small introductory fee from M1 at no cost to you.

The one truth that I continue to hold in my mind right now is this is a cycle. We are on the up trend. Sometime we will level out and come to a down trend.

I am not talking of a stock market crash.

The stock market will go up. Economies grow. 

Think of the wheel of a bicycle. Put a mark on the wheel rim. As the mark goes around it appears to rise and fall. The mark is the stock market. Now ride the bicycle along a road, the road may go up and down too. The road is the world economy.  If the road goes in an upward trend, then even though the mark on the wheel is going down, it will continue to go up relative to the last point on the road where it was at its lowest point.

So while it may be scary to invest in individual companies right now. I am moving to invest in mutual funds and Exchange Traded  Funds.

These stocks and funds spread the risk a little more and give me some diversification. I am going with VYM the Vanguard Dividend ETF  and PREMX the T. Rowe Price Emerging Market Fund.

Both give a decent return, monthly income from PREMX and quarterly distributions from VYM.

I believe before the end of the year we will see less of the lock step rise in individual stock prices. Stock rising and falling at varying rates across the market is more the norm. More to my liking too as individual stock volatility brings more opportunity to make more profits for us as investors.

Till that time comes. Maybe take a look at M1. It is a simple way to invest.

Stock Investor Bullish Bull Sweatshirt
by Shirtoe

Fearing a Stock Market Crash in 2020

Welcome to the Investor in 2020.

Many people today are asking if there will be a stock market crash in 2020?

Will there be a Stock Market Crash in 2020?

Every year it seems the internet is all a buzz with the question of whether there will be a stock market crash this year. I have seen these headlines in financial papers and on financial  news programs for forty years now.

Bull or Bear in 2020?

The answer is a simple, no-one knows for certain. 

Last year   the markets went up, by around 30%. My own accounts went up between 25% and 14.8%. The 25% rise was in a single mutual fund stock portfolio which I had invested a large amount of cash on December 24, 2018, so hitting the market on it's lowest day of 2018. Gaining a large bounce in the first two months of 2019, over 12% in those first two months alone.

My 14.8% rise was in my long term holding Roth IRA. There are a lot of long term stock holdings in that account so they have had a long time to rise over the last 12 years since I opened the account.  Overall my long term return since 2007 is 133% overall.

Should I fear a stock market crash in 2020?

Personally I say not too fear a stock market crash in 2020, here are my reasons why:

•  Your time horizon for investing should be a long period. At least ten years for me.
• Crashes in the stock market are relatively rare.
• Crashes, corrections and dips in the market are good times to increase ones portfolio.
• Fear feeds fear, sometimes fear of a crash may cause a crash or correction for no reason. Thereby creating potentially profitable periods.
• Volatility in the stock market is normal. Creating potential profits.
• Being a contrarian, people showing fear tells me that there is still not an overall feeling of euphoria, which can actually portain a period of downward pressure on the stock market

I do not say to ignore the fear.

Acknowledge the possibility of a downturn in the markets. But maintain a level head.

• Buy stock in companies which make a positive cash flow and make profits.
• I like to take a dividend stock over a loss making growth stock.
• When in doubt, consider an Exchange Traded Fund or Low Cost Mutual Fund.
• Create a strategy, make yourself flexible and modify the plan and strategy to the circumstances.

• Never invest money that you will need this week or this year.

Read More advice CLICK HERE.



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Of Falling Knives. Missed Boats and Markets

There is an old saying that investors should bear in mind; "Never catch a falling knife."

OK so much for the knives in this post. Be sure they will cut you and can cut your profits.

But what do investors do when markets rise so far that things get dizzy and there looks to be a fall, or as the professionals call it 'a correction.'

We should be sitting tight, waiting for the knife, erm stock market to drop.

Riight now we are in a falling market. I am sitting tight on some orders right now. I and you want to maximize our profits and things are looking good for us to buy in on this correction.

Some good stocks are getting reasonable pricings.

I stated in an earlier post that Apple Inc is going to be a buy for me below $550. that holds true not matter what the results posted this week say. Unless they are totally disasterous.

Another interesting falling stock today is Walmart (WMT) the have been accused of paying bribes to Mexican authorities, in order to open stores. So on that news their stock is falling. The bad news is an excellent opportunity to buy in stock. I am an owner of WalMart (WMT) and this fall is an opportunity  to top up on a few less expensive stocks as the initial panic stops and the stock regains its basic confidence.
The trick now is to pick the stocks you like on fundamental levels, good stocks, good profit stream, lots of strong cash flow and set a level where you like a company. Buy in at those levels or cheaper and keep buying until the stock rises then follow it up.

It is easy to say but hard to do.  Buy in as market and stocks reach you value levels not those of a TV or press pundit. If you wait for the good news, you'll be waiting too long and miss the boat.

This 'correction' is a boat you should look to catch, even the correction of 2007-8 was no Titanic for those who bought in on the down turn.

Good Morning March 30, 2012

Good morning to the last day of this first quarter of 2012.

Today will probably see some selling off of stocks for the profits gained in 2012 so far.

Don't worry that is not a bad thing. In fact I would recommend everyone to take and lock in profits at some time.  It is really the only way to make money on stocks.

Don't fret about seeing the stock rise even after you sell. You have just allowed someone else to make a little profit. 

But I admit it does feel good if you sell at the top, and watch the price fall.

Then of course you can often make plans to buy in a stock later.

This afternoon may see some good opportunities for buying in some stocks that have been sold off this week.

Keep an eye out for that and look to buy if you feel there are some bargains to be had.

Prediction for the week Ending 30th March 2012

This week is a nice week to end the first quarter of 2012.

Because it has a clear cut ending there is little vaguery as to what the effects of the second quarter will be.

My theory is that all the major players in Wall Street will aim  to lock in as many profits as possible this week.

So the bull run on the market willl continue Monday and Tuesday.

Wednesday March 28 to the close of business on Friday will see some downward pressure on the markets as institutions seek to close positions and pull in profits.

Look for major sectors that improved dramatically to fall in this last week of the quarter. Sectors such as Financials,

There will of course be lots of reasons given as to why the market will fall, from Europe, through housing concerns, consumer confidence to threat of war with Iran.

Most of these reasons may be made to sound plausible, but over thirty years of experience I have seen this scenario many times.

It happens far too often to be pure chance. It must just be institutional profit taking.

Be prepared to follow the roller coaster down a little, it can be a good buying opportunity in late Friday trading as some bargains may be had.

Monday April 2, 2012 will see some recovery as the climb through a slow second quarter will begin.