This month has been another one of those rare months for markets. Talk about a massive rotation back into value names! Markets are swifter than ever thanks to this era of hyper connectivity. News headlines are instant and trades can be made easier than ever.

There have been strong outflows of money out of treasuries and gold like assets while a significantly noticeable inflow into equities this month. Lots of positive news helped lift the uncertainties for investors. The positive news on vaccine efficacy rates from Pfizer and Moderna, to the election outcomes, and the re-election of fed chair Janet Yellen helped investors strike a more optimistic tone about the trajectory of this recovery.

An interesting survey conducted by BofA Global Research, 84% of money managers with $573B AUM anticipate improving global profits. The highest since March of 2002.

There seem to be some questions and concerns regarding the safety of the vaccines currently planned to be distributed. Finally, more people including Dr. Fauci is admitting that the vaccine discovery did not compromise scientific integrity despite how fast the process has taken place. He states,

“..it was a reflection of the extraordinary scientific advances in these types of vaccines which allowed us to do things in months that actually took years before.”

I am not an expert in the area, but I have been investing in the biotech and pharma industry for over 18 years and know a little bit about the progressions in the industry. Of all the years of reading about the industry, I often thought to myself repeatedly the need for regulatory reform to allow these discoveries and advancements to be recognized with new modernized FDA drug approval processes.

Times have changed, advancements made, and the government branch needs to catch up!

I believe knowing what I knew, helped me remain optimistic during the earlier months of the pandemic. The knowledge contributed to the level of confidence I had towards the future which made buying into the selloff in March that much easier and helped view the crisis as an opportunity. Knowledge helps make better decisions.

Anyhow, this dividend tree needs care and water to grow. Time for an update. 🧐

 

News That Matter

AT&T (Ticker: T)

• Company closes sale of Puerto Rico and US Virgin Island operations for $2B. $1.95B of the proceeds will be used to redeem the preferred interests in a subsidiary (PR Holdings).

Boeing Company (Ticker: BA)

• Boeing’s Space & Security division secured a $9.8B contract for F-15 support for Saudi Arabia. Work expected to be completed by November 2025.
• U.S. House approved legislation to reform the FAA certification process which will require an expert panel to overlook Boeing’s safety culture, mandate safety management systems, and recommend improvements to complete safety systems including design changes.
• FAA clears the 737 Max to fly in the U.S. after 20 months.

JP Morgan Chase (Ticker: JPM)

• Company increased stake in Chinese financial firm JV to 71% from 20% after Chinese regulators finally allow foreign companies to fully own firms in China.

Raytheon Technologies (Ticker: RTX)

• Company acquires privately held provider of satellites and spacecraft system components Blue Canyon Technologies (BCT). Acquisition is expected to allow BCT to quickly scale production to pursue larger and more complex space missions. BCT will report directly to Raytheon’s Intelligence & Space division.

 

Buy Orders

 

Sell Orders

There have been no sales for this month.

 

Pass Go and Collect Dividends!

 

Dividend Increases & Cuts

 

Portfolio Snapshot

• YOY Monthly dividend is up 26.5%.
• YOY Projected annual dividend is up 26.1%.
• YTD Dividend income: $6,310.82
• Portfolio value jumped up 16% in one month! 🤷‍♂️

Need help tracking your investments and finances? I use Personal Capital. The best free software by far today. Give them a try! It is free to sign up!

 

Wrapping Up

Building wealth requires you to adopt the rich mindset. Change your mindset and the definition of money will change. The purpose and your philosophy about what money is will change. Perhaps I will write more on this on a separate post.

What happens today or what is expected to happen a month from today is not as important to me than what is likely to happen 2 to 5 years out. In fact, the further out I can anticipate and project the better. Investing is a long game. To be successful in this game, the game demands simple things from you, the investor. The ability to make decisions today and have the patience to realize your gains years into the future. The realities are most things don’t happen over night.

With all the news, distractions and noise out there on the internet today, focus may be more difficult than ever. Absorb the bad with the good. Take all sides of the story into account. Keep an open mind. Let the truth, facts, and your best research lead you to your best decisions. Execute your decisions and actions. The more your researched, the higher the level of confidence and conviction is likely to follow. Even on the backs of your decisions, remain humble. Probably the hardest thing to do sometimes but you’re likely to be wrong many times over in the course of your investing journey. Take the lessons and move forward.

I believe investors today need to lean towards becoming more visionaries than ever. The value of great fundamental analysis is not enough in this new era. Everyone has the same data and the likelihood to gain an edge and extract alpha is much more difficult today than ever. Things have somewhat changed. That does not mean markets are always efficient. Black swan events like the one this year are likely to become even MORE valuable opportunities going into the future. The windows for entry may be slimmer. Markets are swift to correct and adjust like never before.

I find myself more hunting than reading. Hunting for the evidence that challenge my thesis. There are a lot of bad information out there along with the good. I have noticed there are growing amount of poor stock analysis content from Youtubers, and many sites that can lead newer investors to poor investment decisions. Be careful!

I always try to focus more into my area of competence as Warren Buffett would say. The area I understand well and excites me. Excitement naturally keeps me engaged and hungry for more knowledge. It’s ok if some areas are too difficult to understand. Be honest with yourself about what you understand and what you don’t because that can be one factor of many that determines how successful you become as an investor at the end.

Does investing excite you? If it doesn’t, perhaps you simply didn’t find an area that excites you yet!

Best wishes, health, and happy holidays!