Main financial assets discussed:
- Schwab U.S. Dividend Equity ETF (SCHD)
- iShares Treasury Floating Rate Bond ETF (TFLO)
Top 3 key points:
1. SCHD's universe of stocks is now overvalued and has slow growth prospects, making it a risky investment.
2. Retirees can now get safe 5% yields in short-term U.S. Treasuries, which is a better alternative given the high prices of SCHD's stocks.
3. TFLO offers a higher yield and lower price risk compared to SCHD, making it a safer alternative.
Recommended actions:
- **Sell** SCHD due to its overvaluation, slow growth prospects, and price risk.
- Consider **buying** TFLO as a safer alternative with a higher yield and lower price risk.
Main financial assets discussed in the article:
1. Bank of America (BAC)
2. Network-1 Technologies (NTIP)
3. Archer-Daniels-Midland (ADM)
4. Qualcomm (QCOM)
5. Kraft Heinz (KHC)
6. Meta Platforms (META)
7. Vanguard S&P 500 ETF (VOO)
8. Schwab U.S. Dividend Equity ETF (SCHD)
Top 3 key points:
1. The article emphasizes the importance of having a diverse set of mental models and valuation considerations when making investment decisions.
2. The author provides analysis and recommendations for various stocks based on different valuation models, such as the Graham Number, PEG ratio, and owner earnings model.
3. The author also suggests overweighting favorite ETFs, such as VOO and SCHD, to reduce downside risks and ensure exposure to broad-based market gains.
Recommended actions:
1. **Buy** Bank of America (BAC) as it is considered a stable and well-run bank with a diverse client base.
2. **Buy** Network-1 Technologies (NTIP) as it is trading close to net current asset value and has potential upside.
3. **Buy** Archer-Daniels-Midland (ADM) as it is undervalued and has strong earnings growth potential.
4. **Buy** Qualcomm (QCOM) as it has a high cumulative score of return on invested capital plus earnings yield.
5. **Buy** Kraft Heinz (KHC) as it is undervalued and has potential for debt reduction and fighting inflation.
6. **Hold** Meta Platforms (META) as it is still within range of having moderate upside despite a recent run-up.
7. **Buy** Vanguard S&P 500 ETF (VOO) and Schwab U.S. Dividend Equity ETF (SCHD) to reduce downside risks and ensure exposure to broad-based market gains.
Main financial assets discussed: Vanguard S&P 500 ETF (VOO), SPDR Tech Sector ETF (XLK), SPDR Communication Services ETF (XLC), Invesco Nasdaq-100 Trust (QQQ), SPDR Select Energy ETF (XLE), Fidelity Energy ETF (FENY), Exxon (XOM), Chevron (CVX), ConocoPhillips (COP), Amazon (AMZN), Microsoft (MSFT), Google (GOOG)(GOOGL), Broadcom (AVGO), Phillips 66 (PSX), Van Eck Semiconductor ETF (SMH), Fidelity MSCI IT ETF (FTEC), Apple (AAPL).
Top 3 key points:
1. There has been a rotation out of the tech sector and into the energy sector in recent weeks.
2. The energy sector is currently undervalued and offers attractive valuation metrics compared to the broader market.
3. The price of oil and its impact on inflation and interest rates can directly impact the valuation of technology stocks.
Recommended actions:
- **Buy** energy stocks, particularly oil producers and refiners, as the sector is expected to perform well in the second half of the year.
- **Hold** tech stocks, as the recent sell-off may present buying opportunities for long-term investors.
- Consider **selling** natural gas producers due to an abundance of natural gas supply.
- Look for opportunities to **buy** tech stocks at bargain prices during the correction.
- Consider investing in companies like Google, Broadcom, Van Eck Semiconductor ETF, and Fidelity MSCI IT ETF, which are expected to grow faster than Apple in the coming years.
The author suggests that investors should be selective and not buy the entire market at once via well-known ETFs due to the rapid growth of interest rates, leading to the need for more selective investment choices and potential challenges for companies in sustaining profit margins and dealing with higher debt burdens.
Investors should take advantage of the high yields offered by money market funds (MMF) due to the inverted yield curve and the current market conditions, which may provide a safe and reliable source of income in the near future.
BlackRock, the world's largest asset manager, has filed a proposal to establish a Bitcoin exchange-traded fund (ETF), which could increase mainstream acceptance of Bitcoin investing and open up new investment opportunities if approved by the U.S. Securities and Exchange Commission (SEC).
A series of Bitcoin Exchange Traded Fund (ETF) applications have been submitted to the SEC, potentially offering investors a more accessible way to invest in cryptocurrency and bridging the gap between traditional finance and digital assets.
In this article, the author mentions several stocks including:
1. Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI)
2. Via Renewables preferred shares (VIASP)
3. NXG NextGen Infrastructure Income fund (NXG)
4. OFS Credit Company, Inc. (OCCI)
The author does not explicitly give a recommendation to buy, hold, or sell these stocks. However, they mention that they have a 5% position in USOI and do not plan to increase their holding unless oil prices dip below $80 again.
The author's core thesis is to hold high-yielding securities that offer regular monthly or quarterly dividends to grow their future income stream. They mention that they are accumulating wealth in their investment portfolio and reinvesting dividends to compound their income.
The key information and data in the article include the current TTM yield of USOI at about 27%, the high yield provided by VIASP (approximately 26% at the time of the article), the doubled dividend of NXG NextGen Infrastructure Income fund, and the high yield and potential price appreciation of OFS Credit Company, Inc.
The article mentions the EA Bridgeway Blue Chip ETF (NYSEARCA:BBLU) as a stock that investors may want to consider. The author does not explicitly give a recommendation to buy, hold, or sell, but states that the ETF is "at least worth a look."
The author highlights several key points about the EA Bridgeway Blue Chip ETF. These include:
- The ETF provides exposure to large-cap high-quality stocks.
- It has a relatively concentrated portfolio with fewer than 40 holdings.
- The fund focuses on a balanced mix of "value" and "growth" stocks.
- It has a low turnover, indicating that the management does not actively time the market or chase momentum.
- The top 10 holdings of the fund include Meta Platforms, Nvidia, Tesla, Microsoft, Visa, Apple, Lilly, JPMorgan, Procter & Gamble, and United Parcel Service.
- The fund has a low expense ratio of 0.15%.
- The fund's performance has been slightly better than the S&P 500 and its category average.
The author also mentions a few negatives about the fund, such as its relatively small size and the lack of significant outperformance compared to passive strategy alternatives.
Overall, the author suggests that the EA Bridgeway Blue Chip ETF is worth considering for investors who want actively-managed exposure to U.S. blue-chip stocks.
Amid the unpredictability of the stock market, investors can find stability and passive income through the steady dividends offered by certain dividend stocks, such as Verizon Communications Inc. and Energy Transfer LP, which both boast yields of over 8% and have been recommended by financial giant Morgan Stanley.
The author evaluates the Vanguard Utilities ETF (VPU) as an investment option and despite the recent poor performance of the fund and the challenges facing the Utilities sector, the author believes that the current weakness presents a reasonable opportunity to add to their position due to the long-term positive outlook for the sector.
JP Morgan analysts assert that the approval of a spot bitcoin exchange-traded fund (ETF) could lead to a rally in the BTC mining industry, which is currently threatened by record-high hashrates and an upcoming block reward halving, and they recommend mining operators that offer the best value, such as CleanSpark and Iris Energy.
Contrarian income investors are finding opportunities to "lock in" bigger dividend yields by investing in stock-focused closed-end funds, with many of these income plays paying Treasury-doubling 10% yields now, as consumer spending remains strong and interest rates remain manageable.
Despite the cloudy economic outlook, two index funds - the Vanguard S&P 500 ETF and the Vanguard Health Care ETF - have consistently generated solid returns and are good options for investors.
