Dividend Portfolio Update for January 2024

Boy does time fly! It’s astonishing to see that this income-focused portfolio has been thriving for about five years now. It’s important to recognize during this short, shared journey the profound impact of persistence and time despite the many mistakes I have made with this portfolio.

The magic of compounding acts as an eraser, diminishing what once seemed like significant errors into mere blips when viewed in hindsight. Even daunting events like the pandemic appear as minor blips in the rearview mirror when zoomed out.

In the face of challenging times, maintaining focus and persistence is key. Emphasizing long-term goals becomes crucial, recognizing that adversities, even as significant as pandemics, are temporary, and life gradually returns to normalcy. Life altering investment opportunities often arise when the majority are folding. It’s simple to acknowledge this reality than acting upon it, especially in an environment dominated by risk aversion. But it’s important to view such events as windows of opportunity that only rarely opens in our lifetimes.

Each valuable year invested rewards us with invaluable lessons and experience leaving behind the scars or fragments of wisdom that accumulate over time. Such as fine wine improves with age so do we but as more seasoned investors.

A new year calls for a fresh new set of forecasts and notes to help navigate the uncharted waters of 2024! Ahoy mates!

2024 Forecasts and Notes

Fed’s will lower interest rates. By how much? It’s highly uncertain but I expect about 2 to 4 quarter basis point cuts this year.
Small caps may outperform all other indices this year.
S&P 500 may end the year flat. Mid-single digit returns at best.
Car prices will continue to come down for the entirety of 2024.
US home prices will likely end the year lower.
Trump likely to win 2^nd term.
AI will continue to be the most popular theme of 2024.
India (INDY) will perform strong for the next 3-5 years.
China will not invade Taiwan.