Boy, one thing is certain… No one could have predicted that we’d be seeing the stock market at all time record highs one full year after the U.S. elections. In fact, if memory serves correct, there was a lot of uncertainty about the future of America as two polar candidates aimed to take the helm of this great ship. Reading blog posts I recall many selling some or all of their portfolio holdings in the months leading up to the November elections waiting for the inevitable correction to occur. Yes, we’ll see big market declines in the future but I can assure you that we’ll all be blindsided when it comes. Just look at how many international, political, financial and social threats that have cropped up over the last twelve months. And where are we market-wise… all time record highs. You can’t make this stuff up. On paper there have been dozens of issues that could have derailed this market but nothing has slowed its momentum. The left leaning anti-Trump movement is still in full swing (just imagine if they actually worked with the president to get a lot of his agenda easily passed… we’d be a lot further along), the far right continues to make its message clear and by all accounts we’re still riding high. Sure, the headlines continually read doom and gloom about all the things that could derail this market. Certain, technical readings look scary, the bull market is “long in the tooth,” it was a long term “jobless recovery,” etc. In other words I hear, “Blah, blah, blah and I think blah, blah.” Tune it out. Your portfolio value will go up and it will go down. If your aim is building an ever growing passive income stream tune it all out.
With that being said, it’s clear that not every stock has participated in this bull run, especially in the last year or so. That’s where I’ll look for my next potential buy. As Warren Buffett once stated, “The best thing that happens to us is when a great company gets into temporary trouble… We want to buy them when they’re on the operating table.” Clearly there are many companies on the operating table today. For November I will be considering Hormel Foods Corporation (HRL) and General Mills, Inc. (GIS) once again, each trading slightly above their 52 week lows and still sport safe relatively high yields. Seeing HRL yielding over 2% is a historically high yield for that stock.
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