This is that weekend that kicks off Summer. And we all get Monday off. My thanks to all who served, and especially for all who died that we might be a free people. Some 2.1 million American service men, and some women, have died in our wars since our founding. I served 3 years in the US Army from 11/15/72 to 11/15/75. Has it really been 40 years?!?!?
Let’s look at the 5 Essential Principles and position ourselves right on top of everything.
First, say what you want about the market, but the trend is up. The S&P 500 is near new all-time highs. It’s above its up-trending 50-day moving average, which is above the 500’s up-trending 200-day moving average. By classic Wall Street definition, this is a Bull Market, and we must be invested!
Second, the very most attractive looking EPS and Dividend Payout lines for the past 10 years, according to my strictest criteria, belong to: CVS, PII, AMGN, AOS, CMCSA, HRL, FDS, COST and ECL. These are just the very best there are. When I get to experimenting with charting here shortly, should it prove successful; you will see. And, if it shouldn’t, I’ll likely take my efforts to another level, or another blog site altogether.
Third, this just is not any time to be a buyer. By my technical measures of market risk, my take is that risk is currently HIGH. I am patiently waiting, and continuing to build my cash balance, which now accounts for 12.7% of our portfolio.
Fourth, I sold GWW a couple of weeks back, and I by no means miss it. I have since added a token position in GILD, since it just started to be an incredibly safe-dividend payer, and I have every confidence that they will raise it next year by a significant amount, qualifying it as a new safe-dividend grower. And, if it does not… I’ll sell it.
Fifthly, my wife and I are almost 25% of the way to filling the gap or hole to our first-year retirement income goal, and we are 90% of the way to our entire goal; taking into account SSI, pension and IRA’s, etc. We have a plan. We’re working our plan, and we are attaining unto our goal! Are you doing the same?
Happy Memorial Day Weekend! Here’s to your successful investing!
Harold F Crowell