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Archive for 2020

Posted by Martin September 05, 2020

Problems with valuations, again.

Account Net-Liq: $7,477.66 SPX value: 3,426.96 Shiller PE: 31.47   In my older post I wrote about the market high valuations and how you can mitigate the problem with valuation. You hear (and read) people complaining that valuations are high and there is nothing to invest in. It is not true. And people who say Continue reading →

Posted by Martin September 04, 2020

6.6% correction, is this the end or not?

Account Net-Liq: $7,143.75 SPX value: 3,444.02 Shiller PE: 31.58   Is this the end of the correction? Or just a bounce before we go back lower? If you look at today’s price action, the swing is spectacular. We have seen it in 2018 happening when the market crashed more than 2% and then ended where Continue reading →

Posted by Martin September 03, 2020

The market crashed 4.5% today, finally!

Account Net-Liq: $7,202.95 SPX value: 3,455.06 Shiller PE: 31.73   The market rallied and reached a 3,588.11 level. All new ATH! Outstanding rally! Unfortunately, that rally was totally unhealthy and pushed up by tech companies only. Many of my positions in all portfolios went pretty much nowhere, the only SPY was relentlessly running up and Continue reading →

Posted by Martin August 26, 2020

Where to store cash for a while?

Account Net-Liq: $7,437.20 SPX value: 3,479.73 Shiller PE: 32.01   I was looking for opportunities where I can store my cash in my trading account in lieu of leaving it in the account, sitting there and doing nothing. I also didn’t want to withdraw them and save it in a savings account. That would work Continue reading →

Posted by Martin August 16, 2020

How much do you need to make $1,000 in dividends per month?

I keep seeing people asking this question all the time. It is a bit surprising that people ask that question as it is very simple math to do. Well, it depends on your approach. If you have a lump sum that you can invest immediately then the math is really simple. If you do not Continue reading →

Posted by Martin August 15, 2020

Monthly or quarterly dividend stocks? Which is better?

Account Net-Liq: $7,676.23 SPX value: 3,372.85 Shiller PE: 31.20   I wondered all the time whether it is better to own monthly or quarterly dividend-paying stocks. The narrative goes, that with monthly paying stocks, your dividend compounding will go faster and you get better results over time.   Well, the truth is, it doesn’t matter. Continue reading →

Posted by Martin August 12, 2020

Stock market expectations

Account Net-Liq: $7,735.95 SPX value: 3,380.35 Shiller PE: 31.27     This is an entry I wrote into my Trading Journal yesterday about the market behavior:   Are we going to see a correction? Account Net-Liq: $7,815.02 SPX value: 3,333.69 Shiller PE: 30.83   After a relentless rally, the markets suddenly sold off at the Continue reading →

Posted by Martin August 03, 2020

Markets keep going higher, again

Account Net-Liq: $6,801.82 SPX value: 3,294.61 Shiller PE: 30.70     The problem of all bears out there predicting the second crash is that it is their wishful thinking and prayers. They again look at metrics such as PE, or other valuations and completely ignore FED and that those metrics do not work when FED Continue reading →

Posted by Martin July 26, 2020

Was this a blip?

Account Net-Liq: $5,534.40 SPX value: 3,215.63 Shiller PE: 29.97 Was the drop we saw last week a blip caused by the coronavirus and employment data no one cares about anyway anymore? It looks like it. As Jani said in his post, this may be just a wobble, bulls no longer care about anymore and we Continue reading →

Posted by Martin July 26, 2020

Problems with valuations

Account Net-Liq: $5,534.40 SPX value: 3,215.63 Shiller PE: 29.97 People keep screaming: “The market is overvalued!” Maybe. Investors use all sorts of metrics and formulas to calculate the valuation of the market. They use PE, Shiller PE, Buffett Indicator (typically a Wilshire 5000 Total market cap / GDP ratio) and according to all these metrics, Continue reading →