The Coronavirus is wreaking havoc on the stock markets. A possible Bernie Sanders nomination played into things here in the US as well.
The market has seen some of its fastest losses ever as well as its fastest gains. I believe we are in for a volatile market over the next few months.
What have I done? What am I doing to navigate these rough waters? Here you go:
First and Foremost, I did sell a portion of FFNOX in my Traditional IRA before the market turmoil. I did this after the Coronavirus announcement; I feared it would be worse than assumed at that time. Turns out I got lucky and was right. With that 20% I moved to cash I saved myself about -10%. I do plan on getting back in within the next month.
On the other hand, my portfolio is still down and in the red on the year here because so many of my stocks have been getting pummeled.
What have I bought?
I bought more AKAMAI #AKAM, this is my favorite growth stock. It’s a cybersecurity and content delivery company that I believe is pretty shielded from the virus and somewhat recession-proof.
I bought Westrock #WRK. The dividend is now almost 6%, and with a payout ratio of only around 50%; I believe the dividend is quite safe. The company does carry a good bit of debt; however, they are paying it off gradually each quarter.
I also bought a few shares of Darden Restaurants. Darden is down over 20% in the last month; it’s hard to not want to buy at these levels. The dividend is now 4%. Darden owns Longhorn Steakhouse and The Olive Garden. I fully expect the Coronavirus to harm the restaurant business; however, I AM investing for the long-term here. I don’t expect the coronavirus to be an issue a year from now.
I bought two shares of Mimecast to increase my position. Unfortunately, MIME has not had a good month either. The stock is looking a bit pitiful; however, I do remain hopeful. MIME is an email cybersecurity stock that I think is well-positioned in its field.
What did I sell?
I sold just a small portion of my Putnam Municipal CEF, I did this because it was getting near highs and I wanted to build up cash to buy stocks after they fall lower.
I sold almost all of my SIX FLAGS at a loss. I’m currently using it to tax loss harvest. I’m glad I sold 75% of it after earnings because all it has done is go down more and more. I chalk this up as a SERIOUS MISTAKE and hope I’ve learned from it. I knew it was a risky play; hence why it only made up about .3% of my portfolio.
What am I going to buy?
First and foremost, I’m looking for a nice entry point on ITOT (Ishares Total Stock Market ETF). I will take the 20% cash funds in my retirement account and dump them there over time.
In my brokerage account, I’m looking to buy more QQQ. Once again, allocating more towards simple ETF’s.
One of my top 5 holdings in my IRA is Ryman Hospitality Properties #RHP. It is down over 30% in the last month due to the virus and being exposed not only to the hotel industry but the entertainment/concert industry as well. This company just had an INCREDIBLE earnings report and is growing like a week. If it goes below 50 I’m buying a lot of RHP. It currently has a 6% dividend at this price.
I’d like to pick up some more Fortinet under $95 dollars. It is still overvalued if you ask me. Many tech stocks still haven’t taken THAT much of a hit in this correction. Still waiting patiently.