December 23, 2019. We are approaching the end of another successful year with the Core Portfolio. With the exception of a few disastrous positions in the portfolio (still holding for the income and potential turn-around) the income has been very good in 2019. Of course the overall markets are heading higher which supports our portfolio.
We know that many ‘followers’ do not own the dividend producing positions that we follow: they are stock-only investors, or maybe funds are not available, or they simply follow for the ‘education’. Whatever the reasons we continue to suggest you diversify and hold some income positions.
A few Core Portfolio positions have recently been called, and we are actively looking at numerous potential buys. BUT we buy only on sale, and virtually everything is shooting higher, beyond our buy prices. As usual we will post any buys. (If you like what we do, please hit the “like” button.)
Finally, everyone is giddy with excitement as their portfolios head higher. (The technicals are still point UP.) Stay Diligent. We are anticipating a 5-10% pull back in January-February. A crash or recession is probably not in the cards. But stay alert. We are holding all Core Portfolio positions, with 11% in cash.
Thank you for following us, Merry Christmas and Happy New Year.
If you do not understand REITS, here is an excellent article-with some recommendations.
REIT naysayers and media punditry will point to the Fed’s new interest rate posture as an indication that the sky is falling for REITs. However, in reality, this is ridiculous for several reasons. First, interest rates remain extraordinarily low by historical standards, which is a very good thing for REITs (it cost less for REITs to grow). Second, the economy is strong, which is also a good thing for REITs (especially considering rates remain extraordinarily low). Third, an argument can be made that interest rates cannot realistically go much higher from here because it would make it difficult for the US to compete globally (where rates are lower), and because the US simply cannot expect to raise rates much further without crushing itself under the cost of it’s own debt. And fourth, no one really knows exactly where rates are headed in the future, and if you’re an income-investor it’s just smart to be prudently diversified across multiple market sectors such as REITs, especially if you know how to identify attractive individual REIT opportunities, which we are attempting to help you out with in this article.
NOW IN OUR 8TH YEAR. NOTE TO NEW READERS: Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. Dividend Income Investor is designed for investors seeking income by using preferreds, BDCs, REITs, Closed End Funds, baby bonds and corporate bonds. Don’t forget to hit the like button. Go Here For “About“ Our host WordPress is running ads in the blog and we receive NO compensation from this advertising.