1 December 2023
We entered November moderately invested and took profits into the middle of the month ahead of retail stock earnings reports. When retail earnings were reported the subject stocks moved higher. Following the adage that the price action is more important than the news we moved back into our favorite retail trades- at higher prices. Some of the price action was short covering but sentiment may be changing since many of these retail stocks are improving their financials. Also, the tripling of the price of Abercrombie (sold too soon-as usual- but at a profit) might be an example of the potential for profit if these issues get their houses in order and that piece action was not unnoticed by the big boys and girls.
Since our expected mid-month November pullback did not occur, in the last weeks we have reentered the market buying out of favor year end trades plus additional under selling pressure stocks. We may have to endure a December pullback since the major market measures are currently extended by the 10% rally in the last 2 months. Or maybe Mr. Market will show Holiday cheer and let rotation among stock groups work off the excess.
We currently own:
3M, Disney, Best Buy, Fortinet, Cisco, Campbell Soup, Bristol Myers, Pfizer, AT&T, Verizon, Ford, Regional Bank ETF, Key Bank and Walgreens. These are our Big Cap issues and all except Disney and Fortinet have 4% plus dividend yields.
Our retail issues are Tapestry (Kate Spade and Coach), Foot Locker, Kohl's, the Gap, VF Corp (Timberland, North Face and Vans), Macy's, Nordstrom and Under Armour.
We tiptoed back into the content producers- AMC Networks, Paramount and Warner Bros Discovery. They have been unkind to us the last few years but since they are at multi year lows we think they are good for at least a trade into the New Year.
The same goes for: Organon and Ken Vue spinoffs from Merck and Johnson & Johnson respectively. We also own a bit of Canadian Solar Rivian, Hain and United Natural Foods.
Folks love catastrophes-even when man made.
The Crash at Crush
For those clients of LY & Co and other
interested persons the Quarterly Report on the routing of customer orders under