Investor talk has turned against the Trump Trade, and for all the wrong reasons. While a market correction is due, look to the sectors that did well during the post-election period to perform well–making pullbacks an opportunity to buy.
Now more than ever, many of the biggest, safest and fastest growing yields come in small packages. We hold four relatively small capitalization, high dividend companies in the Lifelong Income Portfolio and review the power of small strength.
The final five Lifelong Income Portfolio members released their numbers, allowing us to gauge their health and dividend stability. Given the difficulty of revenue growth for many companies, it’s more important than ever to examine how costs and operations are being managed.
Incoming data reinforce our take that the US economy has strengthened. But technical warning signs and policy concerns mean investors who invest in specific stocks and not the broader market have a better chance of outperforming.
The implications of the US economy moving into a period of stronger growth, faster inflation and rising rates shouldn’t be overlooked. And neither should the newest addition to the portfolio, an addition whose business goes from headwind to tailwind in this new environment.
This year will be a good year US equity investors, but only if you take an active approach. In that vein, we’re booking profits on one portfolio member and cutting another to hold–protecting profits as sentiment and growth shifts.
DISCLAIMER: Capitalist Times, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing Capitalist Times materials and websites, you agree to our Terms and Conditions of Use, available here including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.