A very violent and interesting 2020 for the stock market-
I thought my safe portfolio of REITs and oil royalties with some tech would have been relatively stable and smooth-
Nope! March came and everything became chaotic-
There was so much volatility that I started swing trading and then day trading so far it has worked out- I am almost at break even-
So what happened this week? Well-
The market got scared and it fluctuated-
Stimulus was coming…well almost coming then nope-
Then Trump got COVID19-
The good news is that the market did not suffer-
I think Trump will be fine and use his recovery as a case to reopen the economy faster and that should help the the economy and the markets.
So I am cautiously optimistic-
BUT- in this crazy times, it is always to be safe then sorry.
So I am 25% cash-
My gold miners got hammered and I am not buying more until I see some stimulus and signs of inflation-
My safer bets are housing REITs which are recovering slowly but their dividends are worth it.
I am long Bluerock Residential Growth REIT (BRG) and Independence Realty Trust Inc (IRT).
They are still down so not much downside. The dividend yields are 4%+ definitely beats my bank account.
Their properties are located in Texas, Florida, North Carolina, South Carolina…metro areas where the economy is fine and growing. The occupancy rate is doing fine and not much delinquency yet. With the exodus from NYC and California, those places will be one of the destinations so good for rental market.
Also, not everyone can go or wants to go to a single family housing so the demand for multiunit housing in growing metro areas will remain for at least some years.
Plus they have reasonable liquidity. They won’t go under anytime soon-
So I will be holding to my housing REITs-
What do I expect next week?
I have no idea. Hope the stimulus bill passes because Americans are running out of money- But we will see- In times like this, Cash is King-
As always do your due diligence and manage your risk 😀
Thank You Jesus for another blessed week.
Thank You for watching over us and keeping us safe. Amen!
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