The two main ETF’s I’m buying this month are QQQ and ITOT. QQQ is weighted towards the Nasdaq and technology. I think during this Coronavirus crash, weighing heavier towards technology is a wise move. So far, it has paid off quite well.
I just added $400 to my ROTH IRA and $500 to my Traditional IRA. In addition to the above ETF’s, I’m also buying these individual stocks-Universal Forest Products and Chewy. I am up over 25% in Chewy, it is of course a growth stock. Chewy is a company that specializes in pet foot delivery. We use their services and see Chewy boxes all around us via our neighbors each week.
In this video, I discuss these ETF’s and bring you my dividend report SO FAR for the month of June **More Dividends to come!**
So far, my DIVIDENDS are as follows:
Stanley Black & Decker $11.04, IEF $0.61 for a total of $11.65 in my TRADITIONAL IRA
PMM $0.61 in my BROKERAGE. Lots more DIVIDENDS to come in this account!
In my ROTH IRA, VBILX $6.77
I’m FINALLY able to add to my accounts this month, so, I’m looking forward to watching that money grow in the market.
I am currently sitting at 6%; one of my short-term goals is to get my total market ETF’s/Index Funds up to 25%. I also want to continue increasing my position in Chewy, Universal Forest Products, Marten Transports, and Fortinet. I feel strongly that these stocks are going to GROW big over the next few years.
Lastly, I’ll briefly mention my Swing Trade for the month. I am swing trading ROKU. This won’t be a long-term hold for me, I’m simply looking for a 8% gain. I am sitting at 2% right now, holding a bit longer. Update later!
I was recommending Stanley Black & Decker as THE stock to buy back in March. I was literally buying it every other day as extra money came in.
You can see the screenshot from my IRA account below. I am up over 42% total in less than three months. One tranche is up over 95%, talk about crazy.
This is why, when the fear is high and the market is crashing, real wealth can be created during that time. The sky was falling, people were all yelling don’t buy, sit on the side lines. Meanwhile, SWK was at 5 yr lows, it was a DIVIDEND ARISTOCRAT, and most importantly, my time horizon was long. It was an opportunity I couldn’t pass up.
I knew SWK was going to be a winner, but I never thought it would be the top performing stock of this quarter for me.
I think the stock STILL has legs to run, so I’ll probably add a little more to top it off.
Unlike many investors, I continue to buy, even as the market climbs up against all odds. I figure I can’t time the market perfectly so why not? I was able to sell a lot at the very top and avoided a HUGE loss in my IRA, so, back in I go. I am buying small portions but consistently, March 13th was the day I re-entered.
I am looking for a new SWING TRADE opportunity this month, but for now, purchasing long-term plays in the Tech, Consumer Staples, Materials, and Financial sectors. Here are my picks:
1)Mcgrath Rentcorp-I just got a dividend from them and decided to reinvest that money back into Mcgrath. I really like this company; it just had a great earnings report. An EPS of .81 vs .75 a year ago, 129.45 million in revenue vs. 122.01 million a year ago. As you can see this company continues to grow. I also believe even during the Coronavirus episode, Mcgrath is fairly well positioned to weather the storm with it’s modular building and storage segments
2)MimeCast-I buy just a little Mimecast here and there. It’s not a huge position for me as I believe it’s a bit more risky. MIME is an email security company. It’s European exposure will of course be a problem during the next two quarters. However, long-term I don’t think anyone does email security quite as well as them and the stock has been beaten down for awhile (even before the virus!)
3)Stanley Black & Decker-I must say SWK has been THE stock to buy for me the last month or so. I got in at a GREAT price with this company and I’m simply adding to my shares here. The company recently had an earnings report; the report was not as great as say Mcgrath’s, with some noticeable weakness; however, SWK has been around forever and I believe will continue to be. This is a long-term hold in my IRA account
4)Eaton Vance-EV will always be one of my favorite stocks. It’s a DIVIDEND ARISTOCRAT that’s increased it’s dividend for over 37 years. I add on any pullbacks.
5)ITOT-Not much to say here, other than I’m a total market guy when it comes to ETF’s. I still have a little cash left in my account and just continue to buy consistently. I don’t want to be caught sitting on the sidelines while the S&P 500 runs back to 3000.
One question I keep seeing all over the internet is was March 23rd the bottom? Well, that remains to be seen. Maybe, maybe not.
I am of the opinion that the market could keep going up and that COULD have been the bottom. At the same time, we could also go lower from here.
At the same time, I can’t say I care one way or the other. The majority of my investments are on a 5-20 year timeline. All that matters to me is that the prices we saw in January are not the highest we will EVER see again. I expect that we will get back to All-time highs and go higher after this is over. The pressure is building and when we hear good news, I fully expect the market will rally like never seen before. I won’t be surprised if a rally occurs faster than most people expect.
As long as the market is up higher than the current ATH during your investment horizon, you are getting dividends, reinvesting, making regular contributions, then the current market conditions are not something to worry about.
How is the Coronavirus itself looking?
We are now seeing a slowing of Coronavirus cases in Italy and Spain. Cases are increasing under 3% and deaths under 4%. This is reassuring. Who knows how long it will be until those economies open back up. However, we are seeing a move in a positive direction. Here in the states, we are still seeing an increase of 8.4% in cases and a whopping 18% increase in deaths today. We have a ways to go, especially here in Georgia, where I don’t believe we adequately prepared for this. Our governor is a bit of a disappointment.
I think life as we know it will probably change until the end of the year. Things will gradually open up but we will all be cautious of going to a crowded concert or restaurant again. Who wouldn’t be???
I have largely been staying in, only to go out for mail/groceries and a rare walk (most places are closed). My fear is not the illness itself but perhaps the medical bills that come with it. My greater fear is having it, not knowing it and giving it to my elderly mother who is an extremely high-risk case here. These are the things that linger at the back of our minds as we face this. My wife’s job has been TERRIBLY affected because she is a full-time musician who depends on gigs for a living. Imagine all of your work gone in a blink of an eye. Myself, I am lucky that I do mostly online teaching anyways and my business has even increased due to the virus.
I fear what will happen to the country during this downturn. So many small businesses could go under here. I see LOTS of businesses over leveraged, borrowing more so they will be “prepared” if this goes on longer.
Anyways, what moves have I made this week with my buying and selling?
1)I keep buying Stanley Black & Decker. I am up an incredible 42% in one tranche I bought, not even that long ago. Of course, I keep buying, so overall I’m up something around 18% in the stock. Nice Dividend Aristocrat and solid company LONG-TERM
2)I am taking nibbles at ITOT every couple of days. I am NOT trying to time the bottom here. I am sticking to my plan of buying anywhere near 2400 and under. I am also buying smaller portions at 2600. I think these are decent entry points long-term.
3)I am gobbling up QQQ on any dips. I think this is a SUPERB ETF to be in. It is less exposed to things like restaurants, hotels, and cruise lines. It is tech-heavy, but I am fine being tech-heavy during these times.
4)I bought Lowes for a SWING TRADE. I only made around $24 bucks off of it but I only held it like three days. I continue to play either Home Depot or Lowes for weekly Swing trades. I like these stocks for swing trades, because I am fine holding either long-term if I can’t get out of my trade quickly for a profit. I made around 8.4% off of this trade. Last week, I traded Home Depot in my IRA account for even a greater profit. I think THIS is the type of market to swing trade-in. You will see tremendous volatility, swings of 8-10% in one day. Why not take advantage of it to go with your long-term investing??
5)I am still playing the TRUCKING SECTOR as I feel these stocks were already beaten down prior to the crash and are holding up well. Marten Transports is one that continues to perform well. So far, up over 8% in the stock over the course of a few days.
As always, here is the YOUTUBE video discussing Some of this:
1)Universal Forest Products is a new position I started, it is a small-cap company in the lumber, backyard equipment, gardening supplies area. They also supply materials for Construction as well
2)Chewy– I’m still taking Nibbles at CHEWY :)….a few shares here and there. My wife and I use Chewy for our two cats (Sid and Ellie) and we love the service. At this point, I consider this a speculative bet though.
3)Mcgrath Rentcorp-I was FINALLY able to buy shares of this company at a reasonable price. The books look great and it is well managed. Another small-cap stock.
4)Still buying Stanley Black & Decker
5)Schneider Trucking and Marten Transports-You MAY be thinking, didn’t this guy just sell SNDR? I did, but I kept a small portion of my shares and at these prices, I think TRUCKING STOCKS present an incredible bargain. They were already priced for a recession and have held up pretty well during the Corona Crash.
6)Taking small nibbles at ITOT and QQQ every few days. I know we can’t time the bottom so I am just buying around 2400 and under mark on the S&P 500. These are great index ETF’s that I want to hold until retirement.
7)Hooker Furniture Company-another small-cap I’ve been holding almost two years. This presents me with a great opportunity to lower my cost basis considerably. I am down around 40% in this stock, luckily it’s not a huge position but I believe in the company long-term, if it can get past the Tariff stuff (and now the virus!)
8)Lowe’s-I had recently bought Home Depot to swing trade and here I am with Lowe’s this time for another swing trade. I am up 3.5% after one day so far, I play on getting out around 5-6% unless it just blasts up and then I will, of course, hold longer.