The market continues to climb. That's great for our buy and hold dividend growth portfolio and great for our put selling trades in MSFT, FCX, LO and XOM. It's not so great for entering new positions.
I say this because it took me many years to put into practice buy low and sell high. In my humble opinion, patience is paramount in being a good investor. I anticipate that the little guy investor will start pouring money into the market now so they don't miss the gains. As usual they will probably be too late. They will buy high with greed and sell low on fear.
With the continued weakness of the U.S. Postal Service I am looking to enter into a position in UPS or FedEx. Today FedEx is down big with a weak earnings report and guidance. They are losing in Europe. UPS is stronger in Europe due to a recent acquisition. UPS also pays a nearly 3% dividend which is rising. As such, I am watching closely to enter into a long term buy and hold dividend growth investment in UPS.
Other long term buy and holds on my wish list are Chevron, Deere, Becton-Dickinson and Omega Healthcare Investors, a REIT. I only purchase REIT's in our Roth IRA so we're not taxed on the income.
Like a lot of investors I'm waiting for a pullback. In the meantime I have put selling trades on four positions, albeit, with 75% of my trading account sitting in cash. I'm watching and waiting.
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