Your Sunday Portfolio's Update
Guy Flynt: January 16th, 2023
Hi everyone! To be transparent, I will give weekly updates on Sunday of my main portfolio. If I have more time, I will give biweekly updates on my second portfolio, the “Funds For Fun” account. The main account is the Alex Dividend Growth Portfolio (ADGI). For this taxable account, I use the stock trading platform called Public (this is an affiliated link where I get a small kickback if you sign up with my referral code/link!). Public charges no fees to invest, you can choose to have your dividends to be in a reinvestment plan (DRIP) (this is very important and will likely be explained in another blog), the platform is simple and user-friendly, and you can buy fractional shares. I have enjoyed Public’s platform during this past year and will continue to use it in the future. The link above is an affiliated link sign up today and get a free slice of a popular stock between $3-300! This is my compounding machine in which I hope to reach financial independence by using dividend growth stocks to supplement my income.
Currently I am planning on investing $263 each week. This number will go back up once I am done financing my wedding!
The second portfolio is to act as a high-return savings account. For this taxable account, I use an M1 finance account (Sign up today and get $10 for free!). I will use this fund to help pay a down payment on a car or house, and any other future expenses. Instead of getting a 1-2% yield/return, I hope to get an 8-12% return.
You can check out this Googlesheets link to see which companies I invest in, which ETFs my finance invests in, my Roth 401 allocation, and my “Funds for Fun” portfolio that I am using to pay for future expenses. You can also check this website called Track Your Dividends (I am not a sponsor, but use and enjoy their product) to freely track the dividends of companies you invest in. You can create multiple portfolios, and see the future value, diversification, and next upcoming payment of your portfolio. This is the main website I use to track my annual income and the future value of my portfolio. Sign up for free and effort start to track your portfolio. This link will send you to my fiancée and I’s holdings, 401k, and Funds For Fun account to see what we invest in and dividend income.
In each update I will go over my current mindset, any buys or sells, reasons for why I bought or sold certain stocks, the future mindset of the stock market, and visual graphics of my DGI holdings.
Financial Disclaimer: I am not a Certified Financial Advisor (CFA), I am a meteorologist. The blog posts about investing are my opinions and for your entertainment purposes. They should not be considered financial advice. Investing in the stock market is risky and you can lose money. If you want to invest in the stock market, or have questions about how or where to invest, please seek a CFA.
Affiliate Link Disclaimer: Some of the links are affiliated links with Public and M1 Finance. As a member of their platform, I earn a small portion if you click the link and sign up with them. I enjoy these companies and would not recommend them to you if I did not believe in their mission and platform. Thank you!
Alex Dividend Growth Portfolio Updates
Current Mindset
The CPI number came out Wednesday, and while the number does not surprise me, the market appears to be rallying. The people see this as a good sign and will continue to buy in. However, this really appears as a bear market rally. The stock market, on a short and medium duration, is not based on good numbers or great companies. It is based on fear and greed, human emotions.
I still envision the U.S. federal bank raising rates. How many times, no idea. Could be twice or could be five or six more times. Whatever that number may be, I think the U.S. will still go into a recession, even though we already are in one. Companies will continue to lay off, rates will increase or stay high, and the stock market will be volatile.
I will continue to take advantage of this volatility. When companies in my portfolio take a dip, I will buy! I continue to hold a large cash position when the dips come and go, trying not to time the market.
The Buys and Sells
The Buys
I only bought one company this week. I bought partial shares of Waste Management (WM) throughout the week.
The Sells
No sells this week!
Why I bought and Sold
Why Did I Buy it?
Waste Management had dipped near the $153 mark, well below its 50-day and 100-day moving averages. I took this as a great opportunity to average down and buy more shares!
Why Did I sell?
No sells!
Future Mindset of the Stock Market
Earning reports are coming for the big players in my portfolio. For example, Microsoft, McDonald’s, and Apple. Their guidance and reports will help steer the emotions of the stock market. Earnings are good and guidance is fair, this bear market rally environment will transition to an exciting and vibrant environment.
The earnings report result will be the base of my decision. Earning reports are good and the guidance is fair, I will use my large cash position to balance out my portfolio. But, if the earnings reports are poor, guidance weakened, and on top of this a rate hike, then I will hold on to my cash position and wait for dips. Either way, I will be patient!
I will resume dollar cost averaging into my portfolio this Wednesday.
Asset Allocation and Total Income
My position in Waste Management continues to be my biggest position. Otherwise, the portfolio allocations stay the same.
Happy Trading everyone!
