Commentary for week ending 11/06/2021

Well, Congress has finally passed the “hard” infrastructure bill – something that they could have passed many months ago, if not for the progressives insistence on coupling the bill to the “soft” infrastructure bill.  It defies my imagination as to why they couldn’t come to the quite logical decision that something is better than nothing.  I guess that is why I will never be a politician.  To me, even if I was a member of the progressives, I would have voted for the first bill, and then break up the bigger “soft” bill into component pieces that would be easier to swallow.  I am sure that are some parts of the large bill that would find support among Republicans and more moderate Democrats.  Again, something is better than nothing!


As for the Growth fund, I am quite pleased with the performance of most of the stocks.  I did take profits in Fortinet as I need to meet some obligations, but I would not recommending selling all of it – again, take some of the money and “play with the house’s money”.  The same goes for NVIDIA Corp. (a Cramer favorite) – take profits but don’t sell all.  As for the rest of stocks in the fund, stand pat as even the Chinese stocks are showing some signs of life.  But I would be cautious of any new investment in any of the Chinese stocks, as the PRC seems intent on “curbing enthusiasm” in capitalism!


On the Income Fund, I am sure that you have seen the news about both Merck and Pfizer.  Merck tumbled on the news that Pfizer’s treatment for COVID was much effective than Merck’s.   But since the main purpose of this fund is income – don’t worry about temporary loses in Merck and simply collect your dividends.  And as I had mentioned before, I think Merck is undervalued (I said this before the news on their COVID treatment was announced).  So, stay the course.  But I would steer clear of Western Union (WU), as I think that the market has passed them by.  


Well, that is about it for now.  Hope you are well and happy investing!

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