May 26, 2022: This week appears to be one of an expected series of short-run rallies within a longer-run downtrend of negative market sentiment. Negative sentiment caused by Fed tightening and liquidity drain, inflation, and the war in Ukraine appear likely to remain for a while. That said, short-run rallies often suggest an approaching bottom.

There are a few stocks and funds to recommend. For growth, consider the following list of Zack’s number 1’s (good for about the next 3 months or so): AMR, IBEX, GPRK, PBF, TALO, and AVT. Right now, the number one Zack’s industry rank is oil and gas and some of these are in that sector. For dividends and growth consider: KRO and CVI. The top 3 ETFs over the preceding 3 months are: FXZ, SPYD, and XLV.

As I said I would provide, here is a list of buy and hold monthly paying CEFs: CSQ*, FOF, RNP*, BUI*, UTG*, AIO*, BSTZ*, BST*, BME*, BMEZ*, NBXG*, HTD, FLC*, TEAF*, ECAT*, PTA*, BDJ, BOE*, CII, EOS, ETJ, EVT, and JRI*. The asterisk indicates that a discount exists allowing you to buy now with the expectation of eventual appreciation. But, you never intend to sell (and thereby incur capital gains in your non-tax sheltered investment account) so it really doesn’t matter that much which one’s you buy. In any case, I would average in to each one with many small purchases over time. This is because no one can say how long the negative market downtrend will continue or exactly when it has reached a bottom. If you are young enough and want to reinvest the dividends be sure to indicate that when you make your purchases. That decision can be changed in the future when you just want the dividend income.

Good investing!