2024-04-04 09:00:00 ET
Summary
- US consumer spending increased by 0.8% MoM in February, the largest gain since January 2023.
- The Dividend Harvesting Portfolio finished week 161 with a balance of $18,205.27, up 13.08% on invested capital.
- The portfolio is generating $1,430.49 in forward dividend income, with a yield of 7.86%.
While this was a short trading week due to the markets being closed on Friday, several announcements helped the market move higher. Personal spending in the U.S. increased by 0.8% MoM in February, which was its largest gain since January of 2023. China's non-manufacturing PMI increased for the 4 th consecutive month to 53 from 51.4. Lastly, the U.S. personal consumption expenditure price index ((PCE)) increased by 0.3% MoM in February, which came below the consensus of 0.4%. This led to the market claiming higher as the S&P 500 closed at 5,254.35, gaining 0.64%, while the Nasdaq finished the week at 16,379.46, up 0.2%. I find it interesting that a narrative was being built that a rate cut needed to occur in March, and when it didn't occur, the narrative changed to the strong economy and can endure a higher for longer environment. I have been leaning towards June for the Fed to pivot, and for all of last year, I have continuously indicated that I felt a rate cut in 2023 would not occur. While many Americans are feeling the pressure from a higher-rate environment combined with the lingering effects of inflation, the companies within the market have held up well, and earnings, for the most part, have expanded. My feeling is that we're in the early innings of a multi-year bull cycle that will be led by technology, as we haven't begun to really see the impacts of artificial intelligence ((A.I)) or robotics. While there could be pullbacks along the way, I think the market will continue to grow in 2024, and many of the investments that individuals were running from in 2022 will generate a positive return....
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Dividend Harvesting Portfolio Week 161: $16,100 Allocated, $1,430.49 In Projected Dividends