The market is grinding here with very little let up – people are talking about how little the market has pulled back this year and due a 5% pullback – it is appearing to be one of those outlier years where things will probably go further than anyone expected. The market is still nowhere near hysterically bullish.
Recently i read an article where a BMO? strategist was talking around 2800 >this year< on the S&P. Quite astonishing. One other thing i read recently from Warren Buffett, he theorizes as to why the selling has been so minimal, people are holding out for the tax cut before selling winners +losers to capitalize on the new savings. Makes sense. The plan is still not concrete but the market is anticipating something pushed through by end of year. Based on this, my expectation is now changing to a correction ( a relief sell-off? ) will occur once the plan is properly formalized then we continue to new highs…
We may never pullback ;), we could go straight to 5000, i have no idea but the tape is really strong until it isn’t…i’m still hedged but also mostly long and just hanging in there resisting temptation.
Back to dividends, this month was a solid $2700. This is over 400% higher than last year. Again, what i held in call options last year was shifted from profits into dividend stocks hence the boost. Rinse and repeat. All the income is diversified from many sectors + global ( tech, finance, pharma, ag and so on ). There is nothing clever or sophisticated going on, i just buy dips and leave it. It looks good until the market rolls over then the dividend becomes a ballast while the share price gets hammered. This month was also a confluence of dividend payouts, October should also be decent then things will calm down into November / December.
The next catalyst is rapidly approaching – earnings. Keep an eye on the price action especially financials.
I hope your investments are treating you well.