Reinvesting in these stocks…

The Small Cap index has dropped by about 12% since its November record high…I see this as an opportunity, not a time to panic.

Why am I so optimistic and have been for so long?  Because I believe in the strength and resilience of the USA economy.  Today I uploaded a video on YouTube that explains this year’s turbulence and why things might not be as awful as everyone seems to think.  You can watch it here:

https://youtu.be/zqKjPEJgeDU

The Small Cap Index (RUSSELL 2000) can easily be purchased in a mutual fund like Schwab’s SWSSX.

I generally prefer to own individual stocks, and I’ve taken this dip as an opportunity to add to 62 of my holdings:

CENBHWMJBGSMMMTDGWAB
CDLXFCXHYJPMMUTNCWDC
COFFISVINDAKMIPLABTRIPXLB
CRFLSINGNLMTPLTRTSEXLE
CSCOGDINTCLYFTRLTWTRXM
CVXGSIOSPMARRTXUAXOM
DXCMHGVISRGMEISBUXVLOXRAY
EBHLTITRIHGNISIXVPGYELP
EBIXHTLDIYTMHHSLQTVZ

Should you invest in these stocks?  I have no idea because I don’t know your risk tolerance.  As always, you should consider your options wisely and invest with caution.

 If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.

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Black Friday Stock Market SELLOFF…an early Christmas present

If you’re concerned about the Black Friday stock market selloff, then take a deep breath and consider the following:

For the past 21 months, the Media has vacillated between two mutually exclusive narratives-

  • COVID would squelch demand and thus crash the stock market.
  • Inflation would cause the FED to raise interest rates, which would squelch demand and thus crash the stock market.

Neither narrative has proven true, as the stock market climbs to a new record high following each fear induced dip.

I believe the same will prove true of Friday’s Omicron panic attack. This is likely a great entry point, especially for ReOpening type stocks that got crush.

 If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.

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Halloween was a TREAT

Well the media narrative about a Sep-Oct stock market crash was WRONG…again.

October was the BEST performing month for the S&P 500 since November 2020.  Even better, today the RUSSELL2000 closed just a fraction below its 3/15/2021 high.

I remain extremely optimist that the COVID90 portfolio & ReOpening stocks will maintain momentum through yearend, and for now have no plans to take profits.

All the negatives- Supply Chain Disruptions, Inflationary Fears, Persistent COVID, FED Taper…are just pushing sales into 1st Qtr 2022.  So, I know it’s early, but…it’s beginning to look like a great CHRISTMAS.

 If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.

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RUSSELL2000 dips below 200dma

For the first time in over a year, the RUSSELL 2000 (Small Cap Index) broke below its 200 day-moving-average.  The insolvency of Evergrande (China’s second largest real estate developer) is being blamed for the calamity, but I don’t think there will be a contagion.  China’s problems are much larger than Evergrande, and I believe the real threat to the US economy will likely be China’s crackdown on foreign owned companies…but for now, that’s in the future.

I think today’s pullback is primarily due to concerns over Federal Reserve monetary policy (fear of tightening) and the US debt ceiling (fear of shutdown or default).

  • This week the FED is holding a FOMC meeting.  Because of the market pullback, I believe they’ll soften their tone on Tapering and their dovish stance will support higher stock prices.
  • The Federal debt ceiling must be extended before Oct 1 to avert a government shutdown or default.  I believe the market pullback will incentivize the Congress to pass a debt ceiling extension, which will support higher stock prices.

Last week I recorded a podcast episode stating that I’m not concerned about a Sep/Oct stock market crash, I remain unconcerned.  You can listen to that episode here:  https://www.wealthsteading.com/338

I think that as the economy continues to reopen, corporate profits will remain strong and stocks will go on to make new highs.  For now, I continue to embrace the phrase “buy the dip”.

 If you find these ALERTs informative, please share them with a likeminded friend AND reference this post on your website or social media channels.

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