Will it be different this time?

Well, after a great first half of 2020, it appears that we may be in for some rough waters in the coming months. With history as our teacher, we know that the average correction in the market lasts about 17 months then we go into another bull market. It could be said that the last bull market lasted for 11 years. I think this will be different. With interest rates rising faster than ever before, inflation going through the roof, supply chain issues with everything from food to micro chips. Then there is climate change causing global disasters and water supply issues. Europe, Russia, China and the U.S. in a long term war over oil and human rights, it seems that there are no positives for the foreseeable future. This may be a time to take advantage of our knowledge and reposition our investments. I would recommend holding lots of cash. We can never time the markets, but dollar cost averaging into equities would be prudent. Looking at sustainable dividend paying stocks would be my choice, as it has been for the past number of years. Here are half of the companies that are held in my best Global Dividend Fund.

  • Schlumberger NYSE:SLB Energy | Oil & Gas Equipment & Services

  • AstraZeneca NASDAQ:AZN Healthcare | Drug Manufacturers - General

  • Allstate NYSE:ALL Financial Services | Insurance - Property & Casualty

  • Eli Lily NYSE:LLY Healthcare | Drug Manufacturers - General

  • Chevron NYSE:CVX Energy | Oil & Gas Integrated

  • Berkshire Hathaway NYSE:BRK.B Eli Lily NYSE:LLY Healthcare | Drug Manufacturers - l

  • Chevron NYSE:CVX Energy | Oil & Gas Integrated

  • Berkshire Hathaway NYSE:BRK.B Financial Services | Insurance - Diversified

  • Entegris NASDAQ:ENTG Technology | Solar

  • First Republic Bank NYSE:FRC Financial Services | Banks - Regional

  • Lowe's Corporation NYSE:LOW Consumer Cyclical | Home Improvement Retail

  • Synopsys NASDAQ:SNPS Technology | Software - Infrastructure


Where we go from here is anybody's guess. I like to take the guess-work out of the equation and make a statement. Now is a good time to review your goals and take inventory of your assets. Real estate may be in for a correction with the high interest rates and possibility of a recession. Cash is king, but will not keep up with inflation. We need equities to do that. This may be one of the best opportunities to grow your wealth, but you need patience and trust in the system. Preservation of capital is paramount. Click this link to book an appointment to review your investments. We should talk about your Will and Power of Attorney being up to date and your needs for life insurance and the benefits of it being rented or owned. I have a members only site accessible from my web page. It will contain useful documents and update information on the economy and how it may impact your savings.

15 views0 comments

Recent Posts

See All