Summer Vacation

I didn’t have to wait too long for turmoil to reemerge.  Apparently the President is unaware of the concept of a vacation as the barrage of libelous, racist, bullying, slanderous and lying tweets continued unabated.  It makes me wonder at times if Jack Dorsey has any regrets of the monster he has enabled. Although it is easy to digress into the madness, I must remain centered, mindful that this is a blog with an investing focus.  Therefore we need to backtrack a little to set the stage for Friday’s meltdown.

Ignoring the slightly left bent of this article, this week’s drama was highlighted by Fed browbeating and a tantrum as a result of a measured Chinese response to additional tariffs imposed by Trump.  Possible additional measures – not mentioned in the article – include of all things a devaluation of the US dollar. Since the Fed is asserting a measure of independence, it appears the only recourse to further Trump’s agenda is through the Treasury Department.  This all culminated on Friday which coincidentally was the eve of the G7 summit. Going into the weekend, the Dow dropped 623 points. My guess is the drop was a little greater than it should have been as positions were probably closed going into the weekend with an aura of uncertainty in the air.

The talking heads really went to town on all of this with the “probability” of a recession increasing in many analysts’ eyes.  Remembering that a recession is defined as two consecutive quarters of negative GDP growth, I don’t see this in the cards as yet.  However, if the consumer bears the brunt of any downturn, it will surely feel like one. 

With this in mind – and also as most of my available cash for the month was previously allocated – I had minimal opportunity to play Friday’s slide.  I had previously set $100 aside as the minimum price for admission to the Webull platform that Tom at Dividends Diversify had reviewed. Basically, on a new platform, I dip my toes in at the minimum level, play around and test the waters before jumping in.  I took it as a sign that my final approval and funding was completed on Wednesday.

The one complaint I have with Webull (so far) is their desktop version is in beta and currently has limited functionality – forcing most activity to a smart phone.  This is probably only an issue for those of us with disabilities. Outside that, it performed in line with Tom’s review.

The enrollment offer had two free stocks which I promptly claimed.  The ones assigned were MFG and ERIC.  Interesting that both are ADRs which could be off-putting to some given the foreign taxes, fees and exchange rates – but they are dividend payers, MFG semi-annually and ERIC annually.  They both have intriguing storylines in that MFG could benefit from ongoing US/Japan trade talks and ERIC could see some benefit with the US blacklisting of Huawei. Neither of these were on my radar but I’ll hold these for now and with the market value being $11.03 getting an unrealized 11% gain for one weeks use of my money.  If only that were to continue … 

My Friday rampage continued by initiating two new positions, both with stories of their own.  CSCO, another 5G opportunity, reported lackluster results and Genpact which was a GE spinoff. GE remains their largest client which may strengthen further if recent allegations against GE prove to be true.  I’ll probably add one more position to the Webull account then pause while I figure out the ins and outs of the app. If you are interested in their promotion, this referral link can be used.

Rampage in this context is a misnomer, but I couldn’t resist.  I guess the real question is whether Trump decides to be civil with our allies at the G7 with a reset towards a united effort against China or if he decides to continue with a self-serving path where an increase in market volatility will result.  Keep your seat belts fastened!