1st Quarter 2024
Market Watch
by Joe A. Hollingsworth, Jr.
As we close 2023 and have survived the trials and tribulations, I believe that better things lie ahead!
First, the wokeism that seems to be the undisciplined extremism of the moment is being more and more called out for exactly what it is, BS! Some examples are: a) The Disney Board is coming to the realization that their woke actions alone have destroyed a third of Disney’s stock value; b) College presidents are demonstrating that extremism in their beliefs is causing more and more damaging media pressure, plus mega donors are pulling back their obligations as a result; c) There is more recognition of the hypocrisy displayed to ignore Hamas atrocities versus Israel’s democracy just trying to survive; d) There is admitted unsightliness of solar panel arms and windmills; and, e) There is an ever-growing resistance to buying EVs. These are just a few of the things that have turned around and offer a glimmer of hope for 2024.
Second, we may never be afforded the immense opportunity again that is unfolding before our eyes of buying and holding high yield dividend stocks. Never has there been such a radical runup in interest rates which has produced such a high and unsustainable yield that affords us the opportunity to purchase high dividend stocks that will become immensely popular as federal rates begin to fall. Their current yield will be almost impossible to replace safely in the future. Now, as an example, with diligent and thorough research, an investor can find double-digit returns on well-healed REITs. Obviously, the stocks themselves have been beaten down in value because present investors wrongly feel like they are facing insurmountable debt refinancing challenges. However, in fact if you drill down and find out the exact structure of the loans, many of those loans are locked in for long periods of time; and, by the time they become due, the rates will be substantially lower thus there is no real threat, just a perceived threat and giving you this historic opportunity.
For the last thirty years, I have ended my emails with “Onward and Upward”. I fell in love with this phrase many years ago, because “onward” meant to me moving forward confidently and never looking back, and “upward” feels like a goal of continued self-improvement. The two words combined seem to lift the spirit!
I hope as we stare 2024 in the face that “Onward and Upward” will help encourage each of you to see the brighter days that lie ahead.
