NKE - 6 Essential Strategies For Successful Dividend Investing

2024-07-18 07:00:00 ET

Summary

• It's the 12th best year in stock market history so far, with a 2017-style ultra-low volatility rally driven by a handful of super popular names.
• Costco has been up 60% in a year as its PE approaches record levels set in the tech bubble.
• Nike was where Costco was today, back in 2021, trading at 48X earnings, a 100% historical premium.
• Today, Nike is down 57% in its third-worst bear market in history.
• Here are six investing lessons, using Nike and Costco as case studies, that can help an investor potentially avoid catastrophe.

It's been an incredible start to the year, with the stock market rising in an eerily low volatility rally.

It was the best presidential election year in history and the 12th-best year for the S&P through the year's first half.

Many are surprised by the rally's low volatility. It's the lowest volatility since 2017. In 2017, the tax cut euphoria rally triggered the lowest annual volatility in 52 years and the second-lowest volatility in US market history.

I want to thank Charlie Bilello for his incredible charts, which are invaluable in showing my readers the important context of markets, investing history, and key investing lessons.

Today's article isn't about the market in general; it is about two specific companies, NIKE ( NKE ) and Costco ( COST )....

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