9 April 2021
As is obvious from our rapid and unprofitable trading of the past few weeks we are conflicted as to the direction of the markets and the risk involved in holding positions.
There are so many warning signs- Bitcoin; NFTs (selling computer images); baseball cards selling for $3 million, Shopify cheap at 300 times earnings since it’s priced at $1233 down from $1500; and on and on.
On the other hand, AT&T yields 6%; Verizon 4%, and Merck 3.5% and are priced at 12 times earnings. The problem with holding value stocks in overpriced markets is that last March value stocks dropped as much as the goofy priced stocks and we continue to foresee a reckoning at some time this year.
And so, we hope to get better control of our greed and thus our trading. We end the week owning XLK (the tech ETF which is 20% Apple and 20% Microsoft), IBM, Box, AT&T, Verizon, First Solar, Canadian Solar, Viacom, Merck, XLE (domestic oil ETF), Apache Oil, Macy’s, GE and Ford.
Happy April showers.
For those clients of LY & Co and other
interested persons the Quarterly Report on the routing of customer orders under