The Morning Call
10/21/20
The
Market
Technical
Tuesday in the
charts.
https://www.zerohedge.com/markets/stocks-bitcoin-bullion-jump-dollar-bonds-dump
Fundamental
Headlines
The
Economy
US
Weekly mortgage
applications fell 0.6% while purchase application were down 2.1%.
International
September UK CPI
was up 0.4% versus estimates of up 0.5%; core CPI was up 0.6%, in line.
Other
To whom does the US Government owe money?
OPEC on the brink of crisis.
https://www.zerohedge.com/energy/opec-brink-crisis
Here is a fairly
balanced analysis of the economic impact of either a Trump or Biden win.
https://www.zerohedge.com/markets/trump-vs-biden-economy-fed-markets
The
Fed
What is the purpose of the Fed?---------ab—soo--lutely
nothin’. Huh.
https://www.zerohedge.com/economics/what-purpose-fed
The
coronavirus
More on Sweden’s success in combating the
virus.
China
The continuing battle in technology with
China.
https://www.zerohedge.com/geopolitical/former-mi6-spy-alastair-crooke-two-undersides-geo-politics
Bottom
line. Just because you are too young to remember a
crash doesn’t mean that it won’t happen.
I have been in
this business since 1968. So, I have
seen a wide variety of crashes: the long drawn out crash (1970’s), the one day
crashes (1987), the gut wrenching 60% plus crashes (2008) along with your
everyday variety of 10-20% selloffs. As
the above article points out, to assume none of these will happen again is
fatally naïve. Especially at a time when
equity valuations are stretched to the upside and the economic backdrop is
worrisome at the least.
So,
what is an investor to do. As a contrary
opinionist, my solution is to always go to the stocks that are in the
tank. Of course, they are there for a
reason; but many have been beaten down more than they should. In addition, many also pay handsome dividends
that can provide attractive income during periods of Market malaise. Among my holdings, I would point out (all
ratings are from Value Line): ATT (7.7% yield, A++ rated), Altria (8.5% yield,
B++ rated), AbbVie (5.9% yield, A rated), BEN (4.8% yield, A++ rated), Bank of
Nova Scotia (6.4% yield, B++ rated), MSM (4.4% yield, A rated), XLE (energy
sector ETF 7.2% yield).
Here is more
(conventional) advice on dealing with today’s richly valued Market:
What high
valuations mean for your retirement plan.
Where to find yield today.
http://www.capitalspectator.com/desperately-seeking-yield-20-october-2020-edition/#more-14916
Here is a thought
for those that do not want to assume the risk of holding individual stocks and
would prefer an ETF/mutual fund.
News
on Stocks in Our Portfolios
MSC Industrial Direct (NYSE:MSM) declares $0.75/shar quarterly dividend, in line with
previous.
Canadian
National Railway (NYSE:CNI):
Q3 Non-GAAP EPS of C$1.38 misses by C$0.08; GAAP EPS of C$1.38 misses
by C$0.06.
Revenue
of C$3.41B (-11.0% Y/Y) misses by C$80M.
Canadian National Railway (NYSE:CNI) declares CAD 0.575/share quarterly dividend, in line
with previous.
What
I am reading today
A great must read article
on the current political scene from a liberal author.
https://johnhcochrane.blogspot.com/2020/10/understanding-left.html
Yeah,
this is going to help America be more competitive.
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for Survival’s website (http://investingforsurvival.com/home)
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