ODFL - The 2 Most Important Charts I Want (Dividend) Investors To See
2024-06-05 07:30:00 ET
Summary
- Recent data indicates a heightened risk of stagflation, with slowing economic growth and persistent inflation.
- This poses challenges for the economy and portfolios, but also presents opportunities to buy beaten-down stocks with strong pricing power and growth potential.
- My focus remains on resilient dividend growth stocks and sectors like energy and healthcare, which are well-positioned for these conditions.
Introduction
It's all about the big picture.
Although it's crucial to focus on picking the right stocks, understanding the bigger picture is key, as our investments are often driven by factors that management cannot influence.
While management can find strategies to gain market share, grow dividends, and improve operations, none of them can impact economic growth, inflation, political decisions (generally speaking), and major supply chain developments.
That's why I put so much emphasis on the big picture.
Essentially, my investment framework is based on three major (interrelated) factors:
- Supply chain developments (i.e., economic reshoring).
- Macroeconomics (inflation, growth, etc.).
- Politics (i.e., new laws impacting the stocks we own).