Finding long-term value in the market
Finding long-term value is the key to winning in this unpredictable market. There is no clear consensus on the markets, with mostly strong fundamentals, especially earnings and retail sales, and plenty of lingering concerns, like the Covid resurgence and the Presidential election. All this leaves is in the same place as the past several weeks, basically half the prognosticators will ultimately be right. That may be the core problem with a passive, single index based investment approach. Can a diversified passive approach be the best short-term solution by giving offsets to any potential equity correction while retaining long-term value? It is a fair consideration we may take up soon. Until then, here is some comprehensive, multi-perspective analysis for your consideration.
Understanding the Current Market Logic
S&P 500 Weekly Update: Despite Abundant Negativity, the Indices Remain Resilient
Second Covid-19 Wave Hits Europe. What are the Potential Economic Implications?
Business Cycle Indicators: 16 October
Weighing the Week Ahead: Will Strong Earnings Signal an Economic Rebound?
The Big 4: September Retail Sales see All-Time High
Why the Markets Might Rally Right Before the Election
Some potential long-term value plays for your portfolio
Looking for and acting on potential long-term value plays is your best bet today. With the broader direction of markets remaining a mystery, it seems prudent to maintain a diversified strategy and seek out possible ‘winners’ within particular markets. As always we show a bias for income investing since we are hopeful your goal is to provide yourself a secure retirement. Income investing can work in the accumulation phase by consistent reinvestment, building to a greater income stream in retirement.
Income Investing
Dividends First: My Number 1 Secret to Early Retirement
10 Dividend Growth Stocks for October 2020
Finding income and value in preferred securities
The 3 Best High-Yield Dividend Aristocrats
20 Hyper-Growth Blue-Chips Likely to Deliver 22% Annual Returns Over the Next 5 Years
Enbridge is the Best High-Yielding Dividend Stock on the Market
Investment Strategy
The Behavioral Edge in Investing
Other Ideas
Adding NextEra Energy to the Carbon Thesis Portfolio
It never hurts to revisit last week’s ideas:
Building your knowledge each week
If you are not working in the industry or have never actively managed your investments, the notion of finding long-term value might seem foreign to you. That is why each week we put together a collection of articles designed to help you get a good grounding in basic concepts. Combine this with the investment strategy articles usually seen in the section above, and pretty quickly you should begin feeling confident enough to hold a conversation about investing with friends or advisors. You may even venture into your own 401(k) plan, for instance, to see how you are invested, and if you should be changing your investment approach. Those are all good things, and we encourage you to get out there and do it.
Mutual fund vs. ETF: Here’s how these popular investments compare
Dividends First: My Number 1 Secret to Early Retirement
Look for your state on the Covid map here: https://projects.propublica.org/reopening-america/