Commentary for the first 2 weeks of 2022

Well, the first 2 weeks have been rough for the Growth Fund.  Recognition of inflation is finally showing up in the market, leading to a tech sector selloff.  I think much of the selloff is unjustified, particularly in the chip sector like LRCX, AMAT, and NVDA.  I think that these stocks will recover and exceed expectations by the end of the year.  So be patient, I think that these stocks represent buying opportunities – in fact, all of the stocks in the growth fund represent good values right now.  And Amazon is bargain priced now, I never thought I would say that about them but with AWS and the retail sector recovering, I see the stock at about 4,000 by year end.   It is a top pick now.


As for the income fund, it has done fairly well, hasn’t it?   That is because most of the stock are in the value arena and they pay dividends.  History shows that in an inflationary environment, dividend stocks represent an excellent hedge.  Jeremy Siegel of Wharton agrees with me:


Got Inflation Blues? Consider Dividend Stocks: Wharton’s Siegel – TheStreet


Well, folks that is about all for now.  I recommend staying the course – don’t be discouraged by the poor performance of the growth fund – perhaps I bought too early, but I think that they will do fine.  We may have to wait longer than a year for great returns, but I think that they are on the way.  And the income fund provides ballast for the paper losses in the growth fund.  






Leave a Comment