2024-03-07 09:00:00 ET
Summary
- The markets had a good week, with the S&P 500 increasing by 0.84% and the Dow Jones jumping 1.59%.
- The Dividend Harvesting Portfolio had another record week, with a balance of $17,078.29 and a profit of 8.78% on invested capital.
- The portfolio is focused on generating recurring dividend income while mitigating downside risk and aims to reach $1,500 of monthly dividend income.
The markets had another good week as the S&P 500 increased by 0.84% and the Nasdaq jumped 1.59%. We're less than 2 weeks away from the next Fed meeting , and there is a 96% chance that rates will stay where they are. I am looking forward to listening to Chair Powell's speech and seeing if anything changes in his delivery. The economy is hot, and I think his comments will be critical to the current rally. Many commentators have been incorrect on timing the Fed's actions, as they have stayed in a higher for longer rate environment. Corporate earnings are strong, and the economy has proven that it's been able to withstand the current rate environment, but it's clear that rates need to come down. Rent inflation is still over 6%, and the only way to get this line item under control, in my opinion, is to decrease the cost of ownership, and that will only occur through rate cuts. We need to see mortgage rates start to subside so the monthly ownership payments decrease. When that occurs, the carrying costs will decline, and part of the spread can be passed on to tenants. I think we will get our first rate cut by the July meeting, and I think May or June will be when the Fed pivots. The last thing anyone wants is a recession or unemployment to increase, and cutting rates will decrease the carrying cost of debt and make it more feasible for businesses to expand as the cost of capital declines....
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Dividend Harvesting Portfolio Week 157: $15,700 Allocated, $1,389.49 In Projected Dividends