ENB:CC - Dividend Harvesting Portfolio Week 174: $17400 Allocated $1552.82 In Projected Dividends

2024-07-04 09:00:00 ET

Summary

• First half of 2024 is profitable for investors, S&P 500 up 14.48% and Dividend Harvesting Portfolio ROI at 14.05%.
• Market outlook positive with Fed rate cuts expected, unemployment increase may signal recession.
• Portfolio generates $1,552.82 in forward dividend income, focusing on diversification and income growth.

The first half of 2024 is in the books, and it's been profitable for many investors. The S&P has appreciated by 14.48%, while the Nasdaq has climbed 18.13%. The real question is, can the market continue on this trajectory and make new highs. We're heading into earnings season once again, and we're going to see if technology and other sectors can continue capitalizing on the AI narrative. I think there are several factors that are bullish for the markets. A tremendous amount of capital is being allocated toward CapEx and companies are expanding their earnings potential. The Fed is also heading into a rate-cutting cycle, as CME Group is forecasting that there is a 10.3% chance we get a rate cut in July, and that there is a 64.1% chance rates have experienced a cut at the September meeting. All signs are looking positive for the market to continue the current rally, except for unemployment . Whenever unemployment increases by 1% a recession follows, and it normally increases by 1% into a recession. Over the past year, unemployment has increased by 0.5%, and while some believe that 4% unemployment is low, recessions have occurred off these levels. The Fed has a dual mandate, and the second half is maximum employment. I think the Fed will have to take rates lower to protect the economy from a recession at this point, as we need the business environment to be less restrictive. I don't know if the markets will replicate the first half of 2024, but I see them heading higher in the 2 ^nd half of the year. No matter what happens, I will still be allocating capital to the Dividend Harvesting Portfolio....

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