I have one share of a number of companies I don't want as current holdings, and I'm intrigued that during big temporary up days like today, the stocks with the largest temporary gains are things like Marriott, Boeing, airlines, retail - all sectors which are very likely to be haunted by pandemic problems for another year or two perhaps.
I've focued on holdings on firms like IRM and ABBV which are down with the market, but will only see a very small and limited duration pandemic impact. Until today IRM with a current 10% dividend yield was trading in tandem with REITS, but they're not really a REIT which can lose retail and office tenants like many.
I'll collect big dividends as the global economy sorts itself out over the next three years.
I also see a rebound in oil and gas related stocks which have limited exposure to low oil prices like OKE with a 15% dividend or perhaps a riskier but larger WMB with a 10.5% dividend as many investors are looking for yield again as the fear subsides. None of these are close to being some small cap and are midstream, effectively utilities.
What will be interesting to see is what happens to richly priced Amazon and other tech stock with stocks with small or no dividends like QCOM, GOOGL, AAPL and MSFT, all dependent upon larger economic activity.
I think there will be plenty of time to come back for the Marriots and retail, as they rise on fall on dashed hopes. Good for trading now, but not holding until later. If I'm wrong on this I will miss out on some 'exciting rebound stories', and I can easily live with that.
We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.
AI
