Well, this has been a rough week (and month/quarter), especially for growth investors. I have been particularly disappointed in PYPL and NFLX. I think that NFLX will recover – I think worries over subscriber defections are overblown. There is still room for growth, especially outside of the US. But we will see. As for PYPL, I am less than sanguine. Management has been less than open with their reports. So I can’t say I would buy more. As for the rest of the stocks, stay the course and I still think you will be rewarded. I am especially confident that AMZN will rebound. Increases in Amazon Prime cost will absorb some of the higher shipping costs and it seems that AWS is unstoppable in the cloud market. So buy more AMZN with confidence in long term returns. I know that the fund has failed to beat the S&P so far this year, so again, in the long term I feel that these stocks will win.
As for the income fund, no changes are required, except that I will need a replacement for FHN after it is acquired. Just collect dividends from all of the stocks and the ETF as the primary purpose of the fund is income. As for losers, don’t worry. The financials will soon recover, assuming that the Fed keeps raising rates without causing a major recession. The JEPI fund is in to provide balance as it provides monthly income rather than quarterly; also, it uses derivatives to provide income in addition to dividends. As for VTRS, don’t worry, collect those outsized dividends for now as I think price appreciation will return. Also, notice that this fund, even without dividends, has increased by over 6%, while the S&P is down 12%.
Speaking of income, did you notice that I-bonds are now paying 9.62% for the period May thru October, 2022? I guess it is a good news/bad news situation. The good news is that you will get a very good rate, the bad news is that the Fed and Biden have proceeded to overheat the economy to cause those rates to be so high. It also vindication for my I-bond recommendations from many years ago. I bought them as a gift for friends children many years ago and some of the those friends questioned the wisdom of buying I-bonds. They are now not so critical because many of them are paying as much as 13.18% (check out this link: Individual – Series I Savings Bonds Rates & Terms: Calculating Interest Rates (treasurydirect.gov).
Well, that is about all for now. Stay healthy and stay invested!