It’s that time of the month again, it was quite the wild ride for me in the markets, one of my ‘risky plays’ appears to be paying off extremely well so we will see what happens over the next few months. If things work out, my dividend income could potentially double when it is fully implemented however i’m not going to tempt fate just yet as anything can happen.
April dividend income is typically very weak as not many of the companies i own payout then, my tally came in at $327.61. This is down from the $396.10 that i made during the same time last year. Doesn’t make sense on the surface right? However, as explained in prior posts, i’ve re-allocated my portfolio substantially to take advantage of significant capital gains risk/reward plays – when these are done, i should see a substantial boost to income. Even with the re-org, the total is not far off what i had last year. I should still be on track to what i made last year even if the risky bets implode.
My take on the markets is sideways for the rest of the year with a potential shakeout here and there. I am looking at the S&P to oscillate between 1800 and 2100 for a while, digesting a massive 6 yr run, absorbing a potential hike or two from the FED. Europe is embarking on QE and the USA has stopped so from an extremely simple view, my take is that money will simply come out of the US and move to Europe and elsewhere. I’m expecting the US Dollar to continue sideways now with no major rallies to new highs. I’m expecting to see significant appreciation in euro assets while this goes on.
The Greek issue is going be interesting but if there is a Draghi put on the market then look for a similar kind of ramp to assets, i will be loading up on any major sell-offs.
I have no idea when this central bank party will stop but i assume inflation will come back with a vengeance at some point which is why i keep buying commodity plays on big dips and tucking them under the bed for a long time. This is a 5+ year play.
Have a great weekend