Week 1 (Nov. 1 – 10):
Goldilocks global economy and the three bears are no where in site. Consider SQ, INTC, MMM, GRUB, MB, SAFM, ASIX, LAZ, and CRL for growth. Some of these like MMM, and LAZ also pay dividends that offer more growth. Keep cash on hand for any corrections, or for buying TVIX at the start of a correction to acquire even more cash. Rising interest rates may steal some allure from high yielding ETFs and CEFs so be more conservative with those. Doesn’t help to get dividends that are offset by capital losses. Good Investing!
Week 2 (Nov. 6 – 17):
I am letting the weeks overlap a little this month. I’d recommend taking a look at SQ, AABA, IDTI, and CBG as pure growth picks. Dividend growth picks include SWKS, RS, CME, BX, NSP, and PK. A dividend payor with a constant dividend and very strong stock appreciation is CY. Strong growth and dividend growth stocks when bought on pull-backs offer significant downside protection against an overall market correction. Always keep cash on hand to buy these stocks when the opportunity arrises. Never buy too much of a given stock at once because it may correct even lower in the near term. When a stock looks like it is topping out be sure to take profits. If a stock doesn’t pan out in terms of growth or it goes down by 10-15%, sell it. Never wait for a stock you have already bought to quit going down beyond about 15%. You must discipline yourself to limit your losses and maximize your gains to come out ahead in the long-run. Good Investing!
Week 3 (November 20 – 24):
Earnings are still relatively sound, as are the underlying economic fundamentals. A flattening (the gap between shorter and longer term treasury yields) yield curve should constrain the FED’s ability to tighten short-term interest rates over the next several years. This is good for stocks as higher bond yields attract investment capital away from riskier stocks to safer bonds. Corporate tax cuts will increase investment, capital repatriation, productivity, and wages. All good.
Because Millennials have improved attitudes toward home buying, I’d recommend looking at dividdend growth stocks and funds in the home building sector such as DHI and XHB. The constraint for Miillenials is high student loan debt, but these stocks and funds are on an upward trend nevertheless. Other dividend growth stocks to look at include: CW, MXIM, and ORA. Growth stocks to look at are: NEWR, TSM, GBX, UFPI, MDWD, and KURA. As always, sell those that decrease in value by 10 – 15% without fail. Keep those that continue to add value to your portfolio over time. Starting out small is no problem. Jim Cramer stated that he started out with 5 shares of this and 9 shares of that and now manages a very large Charitable Growth Fund. Once you get going, be like the entrepreneur Jessica Alba: be tenacious and never give up. As long as it works, continue to hold some cash and buy on the dips — and especially on the bigger corrections.
There is no end in sight for the current bull market. Of course, more fiscal stimulus that only targets expenditures might move that end forward. On the other hand, more infrastructure spending (other than on a border wall) will increase productivity and economic growth through supply side effects that cause the bull market to run further.. Good Investing!
Week 4 (Nov. 27 – 30):
Most likely, the year should end strongly . . . with possibly a Christmas rally. For growth, take a look at ILMN, SAP, DQ, and ALGN. A relatively stable and reliable high yield CEF that pays monthly toward the end of each month is AGC. Although highly leveraged, AGC is at relatively low risk due to the low-interest rate environment that, despite small increases in the Federal Funds target rate, is likely to remain at relatively low levels for the forseeable future. Good Investing!
