It's Labor Day

Summer Is Over But Nothing's Changed

That does not mean that the perception of investors or traders is the same, it isn’t. By now, you have become aware that I’m a pretty boring type of long-term investor. I do that because it works. In my estimation, it is going to work going forward.

So right now, I’m (1) still buying high-dividend stocks, (2) shortening up the maturities of my debt portfolio, (3) buying out-of-favor “name brand” securities, and (4) keeping a lot of powder dry. Cash is king during uncertain times, and that’s what we have. Over the weekend, a couple of traders asked me whether I thought the markets were going to go higher or lower. My response was simple: yes.

What I’m Doing

To protect my investments, given this world is “crazy” at best, I’m long a mixed term of call options for WTI Crude and the VIX. All told, about 2% of the total assets under management are used to provide a hedge to the uncertainty that exists.

I’m buying good stocks, Amazon (“AMZN”) and the Trade Desk (“TTD”). There are a few more, but you are going to need to be a member of The Ticker to follow me. We’re making a few changes, so keep watching.

I like Silver and Gold, but I’m not interested in mining stocks that are not diversified and in the top tier. Sorry folks, I’ve lived through periods of mismanagement in these stocks in the past. The corporate leadership took care of themselves first in the past and that’s not changing.

Dollar General has piqued my attention for all of the wrong reasons, but it will be back. The question is when, so for now, I’ll just watch and pick up some cheap stock using “below-the-market” naked puts. Give it a try, it works just like it’s worked for me as I’ve accumulated Boeing.

The Election

If you want to talk about nothing changing, this is where to start. I hate both of the candidates, but I hate Trump less. Neither has a real “strategy” to lower the rate of inflation we’re subject to, but Trump at least knows we have to “drill-baby-drill” and turn off regulations. Bringing down the cost of transportation and production works but realistically, there’s nothing else to do.

So summer is over, and who knows, you might even hear from me a little more often. It may be a little scary, but in reality, I’m not changing much of anything. I seldom do and trust you listen.

The Beatles were pretty good. In “Nowhere Man,” they hit the nail on the head. No one knows what’s next. I’m a very patient person, in particular, I’m a hedger, and you should be too. I buy good stocks, I like dividends, and when the “time” is right, I will speculate, but this isn’t the time. Too much uncertainty out there, so I’ll hold on to my cash until things change. Join us on The Ticker, and you’ll know when I change. Until then, enjoy life, have a good holiday, and stay tuned.