What's on the table for Stocks and Other Asset Classes 2022

I’m going to hold and add to MP.

All of my my REITS came back strong last week. Rents are going up in 2022. wutwut :banana:

1 Like

I would be worry of any direct China exposure. I actually do think they are heading into some trouble waters with the way Xi wants to direct the country.

Xi forgets that China enjoyed prosperity when they were allowed to do business freely with the added bonus of strong domestic protection of course. But being able to do business freely and with the support of the central/local government was huge.

1 Like

Coke, Master Card, and Apple according to Warren Buffet. Inflation seems to be driving his picks. I think it’s smart.

Up 7% at the bell. Noice.

So bye bye CCL?

That’s bully pulpit cowboy economics there. Planes next?

Stocks in 2022? Just ask her :grin:

All my Brett Owen’s REIT recommendation are coming on strong as of late: and the heavy dividends in my IRA make me haphaphappy

RVT, just picking up speed, up 2%, 6.8% div (buy)
HFRO, up 3.5%, 8.6% div (hold)
APTS, up 69%, 4% div (buy)
MPW, up 10%, 4.7% div (buy)
AIRC up 21%, 3% div (buy)
AMT, up 13%, div keeps going up every quarter (buy)

Not too shabby.

2 Likes

Not sure what this means in the short term, but I am up 74% or so now. Wutwut!

Taiwan semiconductor starting the year off strong. Up5% at the get go.

My Robinhood account was at one point up twice as much as the S&P but I ended up lagging it on both RH and my other actively traded account (largely big tech and Amazon).

I think 2022 will be the same. Stock picking will continue getting harder.

On any major correction I might buy some 3x leveraged indexes. I was just reading how TQQQ turned $10k USD into $1M over the last 10 years. The return over time is ^3, not x3. But if the market doesn’t go up, you’re screwed.

Had planned to do this right after the 2020 nosedive, but chickened out. Bought in, sold off after a few days, made a quick buck (a lot of bucks actually). Left one share of each etf in there to see what would happen longer term, and turns out I’d have 7x return by now. :confused:

Along those lines you might find this interesting: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs] - Bogleheads.org

1 Like

I noticed you listed the dividend payouts. You do realize that a dividend is not the same as an interest payment on a bond, right?

The price of a stock (or REIT) is adjusted downwards by the amount of the dividend payment.

I’m not saying dividends are useless, but many retail investors are under the misguided impression that they are getting additional money when a dividend is paid.

At least yours are in tax deferred or non-taxable accounts.

(You are probably aware of the above, but posting this, just in case, or for the benefit of lurkers.)

As you shouldn’t.

I’m not sure what you mean by this. I’m fairly certain my dividend payments from MO were additional money. Like waaaaay more in total than I put in 15 or so years ago.

Read the link I provided. When a dividend is paid the price of the stock is adjusted downwards by the amount of the payout. Therefore you are not getting additional money. You have more money due to MO’s price appreciation.

You would have had the same amount of money if MO had not paid a dividend. Mo’s price would not have been adjusted downwards each time it had a payout.

For example if a $10 stock pays a $1 dividend, the stock price is adjusted to $9 the day the dividend is paid. Ie., you have not received extra money.

More info here: https://www.etf.com/sections/index-investor-corner/swedroe-dividend-growth-demystified?nopaging=1

1 Like

Before we go on, I DRiP my dividends.

That’s fine… it doesn’t change anything. You’re still not getting extra money with a dividend.

I dabble in some spxl from time to time… Do your research, understand how daily reindexing and fees and their effect on returns, and be prepared to hang on. Not for the faint of heart.

1 Like

So, am I not getting additional shares via the dividend? WHich can then be sold for more money, when the share price increases?

I’m interested in what you’re saying, but I am skeptical. I have lots of shares of MO and PM and PFE. I used to have a few. I stopped adding money 12 years ago or so. How would your article explain that? :ponder:

Did you read those articles (the one from Vanguard, as well)? I can’t make it any simpler than the example I provided. If you are skeptical you can verify that the price of a stock is adjusted downwards by looking up the opening price of MO, XOM or whichever, on their ex-dividend dates, compare it to the previous day’s closing date, and see for yourself. It’s that simple. There are sites out there that publish that info.

Sure you would have less money if you did not reinvest your dividends, but that would be no different from choosing to self-dividend and sell x% of some stock that does not pay a dividend or you want a bigger dividend than the stock currently pays. Dividends are not “free” money. Again they are not like interest payments that increase your principle or total investment amount.

It’s weird that so many retail investors have a hard time shaking or fall for that misconception.

1 Like

You are getting more shares, but the price was reduced by the amount that was paid out. So no extra money.

1 Like