It’s been a little over two months since we last provided an update on our dividend portfolio and there have been some interesting, and not so good, developments since then.
Obviously the markets have been going through quite a rough patch, to put it mildly, over the last two months. The result is that our portfolio has taken a little bit of a hit on the top line number. On the bright side it represents chance to add some shares to our holdings at a lower price. It can be hard to watch and difficult to stomach some of these roller coaster days, but we have to keep the big picture in mind.
In our last update we said it was nice to see a positive month. But we also cautioned that we should not get ahead of ourselves and expect it to continue. This turned out to be a good call as one can never underestimate the power of incompetent government lifers to further screw things up and cause more turmoil.
Additionally, in our last update we questioned Mr. Fed Chairman’s rational for saying that he believes interest rates, currently at 2.5%, are now at neutral and neither helping or hurting the economy when their own preferred inflation gauge clocked in at 4.8%. And that’s after stripping out food and energy which puts inflation at a disturbing 6.8%. As has become customary with our esteemed and incompetent fed chairman he and his cronies had to spend a lot of time walking back that idiotic comment over the last month. Much like they had to do with the transitory inflation hoax they perpetuated for over a year to justify not doing their job.
Another month in the books and market conditions improved, but let’s not get ahead of ourselves and start celebrating the return of the bulls. Sure, it was nice to see the markets move up for once. And they moved up in a significant manner as well. However, we are not even close to being out of the woods on inflation and our economy is slowing down.
Since our last dividend portfolio update the markets have continued their roller coaster ride. I won’t go into my opinion on the current state of our government as I aired my frustrations in our last blog. You can find my take here if you’re curious or want a recap.
While there isn’t anything we can do about the economy, there are things we can do to set ourselves up for long term success. Now is not the time to panic and sell your positions as that will only turn paper losses into realized losses. It can be hard to stomach this type of volatility, but having been through this several times before we know things will turn around eventually. So while we wait for the pendulum to swing back the other way we can take advantage of this opportunity to dollar cost average current positions and/or add new positions at a nice discount.
Well, here we go again! It seems that there is no end in sight for the market volatility that has plagued us this year. And rightfully so, as this is the result of the fed failing to do it’s job and our government leadership being grossly incompetent.
This isn’t to say we are not long overdue for a correction or even a recession, because we are. However the runaway inflation freight train, which is the worst part of this whole economic disaster, was 1) mostly avoidable and 2) could have been tempered with an economic strategy based on facts and data followed by doing what’s best for our country and our economy.
After a fews days on the road we are settled into our new spot in Pennsylvania where we will stay for a couple of months. Normally I love being on top of everything that is going on in the markets and with our financial situation, but I have to admit that focusing on driving and enjoying the scenery for a few days was a really nice break. I tend to get overly invested in the market details, trends and financial news. This is probably not very healthy so being away from turmoil for a few days was refreshing and something I should do more often.
As for the current state of the economy, there isn’t really much more to say. Our government failed us, and is continuing to fail us. All we can do is wait to see how everything plays out and take advantage of any opportunities that may arise. Sadly I think we are heading for a recession as we can’t count on an incompetent fed, and an even more incompetent former fed chairman turned treasury secretary, to glide the economy down to a soft landing.
It seems like the months are flying by and it’s been some time since our last dividend portfolio update. While the markets have been extremely volatile our dividend portfolio has remained somewhat steady. We are not setting the world on fire, but most of the stocks in our portfolio have held up well in comparison to the overall markets.
The level of uncertainty and fear continues to rise due to geopolitical problems, inflation and supply chain shortages. Adding to the downward pressure is our grossly incompetent federal reserve and a federal government that either doesn’t possess a basic understanding of economics or is more interested in satisifying fringe lunatics than doing what is best for the country and our economy.