Weekly Economic Commentary and Portfolio Update 📈
Below is a paraphrase of the full portfolio update and market review article I write weekly. Click here for a full portfolio with more statistics, an economic review, plus a break down of all my trades (which you can see in my Commonstock profile as well).

Market Review

"This week the S&P 500 broke a seven-week losing streak. Last Friday the S&P hit its lowest level since March of 2021, only to rally back a strong 6.6% this week. The NASDAQ did better with a gain of 6.8% while the DOW was at 6.2%.

All eleven sectors of the S&P finished positive with consumer discretionary leading the way with a 9.2% performance to follow its rather disappointing performance last month. The sector still down over 5% for the month of May, largely due to the terrible showing of large retailers being shocked by inflation and supply chain concerns. However, the second half of this past week saw renewed gumption from the retailers with hopes that the worst is behind us. This is evident if the performances of Best Buy ($BBY), Costco ($COST), Target ($TGT), and Walmart ($WMT) with respective gains of 16.7%, 12.2%, 8.3%, and 7.7% for the week.

Mega caps also did some work with Apple ($AAPL), NVIDIA ($NVDA), and Tesla ($TSLA) contributing to the rally with similar gains.

Through this rally, the energy sector continues to show strength and is up to almost 17% gains for the month of May. Crude oil is back to its high prices for the month.
Treasuries continued their gains for the third consecutive week this week, drawing some strength from speculation that the Fed could pause its rate hikes in September.

Portfolio

To date, I have invested $9,100 into the account, the total value of all positions plus any cash on hand is $9,531.06. That’s a total gain of 4.74%. The account is $448.18 for the week which is a 4.93% gain, after briefly being in the negative territory last week.

I love tracking my portfolio against a benchmark like the S&P. The above chart comes from Sharesight which makes portfolio and dividend management a breeze!

Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week.

Dividends

This week we received two dividends. $1.84 from ETRACS levered dividend ETN ($SMHB) and $2.45 from Starbucks ($SBUX).

In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically. All dividends were reinvested.

Dividends received for 2022: $122.84

Portfolio’s Lifetime Dividends: $145.76"
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Powell Speech, New Home Sales: Daily Contrarian, May 24
Good morning contrarians! Stocks are dropping again after disconcerting news for online advertisers after the close…

$SNAP’s news took down the likes of $FB $PINS $GOOG $TTD and others.

Today we look to a speech by Fed chair Jerome Powell and new home sales at 1000.

Also earnings from $BBY $RL $ANF and $JWN to perhaps provide some more intel on retailers, their margins, and the state of consumers.

What to expect from this whole smorgasbord is discussed in today’s briefing and podcast:
What to watch for the week of 5/23/22.
Get prepared to take on the market this week by checking out my watchlist. It details some potential catalysts for the week beginning May 23rd. Hopefully this graphic can help you navigate your trading decisions. Feel free to save it for reference, share it in your trade groups and repost it on your social media page. Also be sure to follow me. Good luck everyone! $ZM $SPY $NVDA $QQQ $BIG $DG $BABA $M $BBY
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Dividend Portfolio Update 📉📉
Below is a paraphrase of the full portfolio update and market review article I write weekly. Click here for a full portfolio with more statistics, an economic review, plus a break down of all my trades (which you can see in my Commonstock profile as well).

Market Review

"This week I was out on vacation but still managed to monitor the market and make some buys. The S&P fell 3.1% this week following more disappointing corporate updates and data that shakes potential economic growth. The Nasdaq was down 3.8% for the week followed by the Dow which was down 2.9%.

Consumer staples and consumer discretionary segments were hit particularly hard this week as many retailers provided cautious outlooks due to cost pressures and supply chain concerns. Walmart ($WMT), Target ($TGT), and Ross Stores ($ROST) were the main players here, expect to see more of this next week as more earnings reports are published. My eyes will be on Best Buy ($BBY) who had a particularly rough week following the poor performance of these retailers.

On the other hand, utilities, health care, and energy sectors ended the week green, if only by a little. There was some rebound actions throughout the week pushed mainly by a contrarian approach to our potentially oversold market with a BofA survey showing that cash levels of fund managers are at their highest since 9/11 (6.1%).

The market barely stayed out of bear market territory this week amid growth concerns fueled by stubborn inflation, supply chain issues, and a number of economic data releases that were relatively disappointing.

The Federal Reserve Chair Powell spoke on inflation and said that the Fed will be more aggressive with rate hikes if inflation doesn’t come down in an obvious way. All eyes are on inflation and that will continue to be the driving narrative behind the market’s performance.

Portfolio

To date, I have invested $8,980 into the account, the total value of all positions plus any cash on hand is $8,901.17. That’s a mere loss of $78.83 for a total return of -0.88%. The account is down $142.75 for the week which is a 1.58% loss.

Below is a table of everything we are invested in so far. There you can see my number of shares, shares bought through dividend reinvestments, average cost, gains, and more. The tickers in green are positions that I bought shares in this week.

Dividends

This week we received only one dividend. $1.44 from Texas Instruments ($TXN)

In my portfolio, all positions have dividend reinvestment enabled. I don’t hold onto the dividend, I don’t try to time the reinvestment, I just let my broker do it automatically. All dividends were reinvested.

Dividends received for 2022: $118.55

Portfolio’s Lifetime Dividends: $141.47"
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New Lows Today @ 10am
Visit highsandlows.substack.com to see more
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Paul Cerro's avatar
$26.8m follower assets
Can deeper gas discounts drive more people to sign up for Walmart+?
The news: Walmart doubled the fuel discount it offers members of its Walmart+ program. Members will receive five to 10 cents off each gallon at both Walmart-run and Murphy USA stations (the discount varies based on state regulations).
  • Members will also receive 10 cents off each gallon at roughly 12,000 ExxonMobil stations.
  • The announcement comes days after AAA reported that the national average for a gallon of regular gas rose four cents over the past week to $4.12, which is a 43% increase year-over-year (YoY).

More on this: The increased gas discount provides Walmart shoppers with another reason to enroll in the $98-per-year Walmart+ program, which already offers free delivery on items, like groceries, purchased in stores, free shipping for online orders, and prescription drugs discounts.
  • Nearly all Walmart customers, 91%, are aware of rising gas prices and nearly half of those shoppers have changed their behaviors because of those increased costs, wrote Chris Cracchiolo, senior vice president and general manager of Walmart+, in a blog post. “We want Walmart+ to help our customers save time and money, not only when they’re shopping with us, but throughout their day. We’re excited to continue to find new ways to deliver for them.”

Growing membership: Boosting membership in Walmart+, which launched in September 2020, is a key priority for the retailer.
  • Walmart has a significant opportunity to do so because of its vast reach. About 90% of the U.S. population lives within 10 miles of a Walmart store, according to the company. And 95% of shoppers had visited a Walmart store two or more times in the past year, according to data based on a Numerator consumer panel reported on by Business Insider.
  • However, only 15% of US households had Walmart+ access in February, a far cry from the 62% of households with an Amazon Prime membership, according to research conducted by Bizrate Insights for Insider Intelligence.
  • Increasing that share can produce significant dividends given that Walmart+ members are more lucrative and more frequent shoppers, Cracchiolo told CNBC. They spend more than twice as much with the company as the typical Walmart shopper, since they shop both online and in stores.

Inflation as an advantage: US inflation rose to 8.5% in March YoY, per the US Labor Department, which is the largest increase since December 1981.
  • Soaring gas prices, which rose 18.3% in March, accounted for a significant share of that gain.
  • Periods of inflation push consumers across all income levels to be increasingly price sensitive, which is an advantage for Walmart given its long-standing positioning as a value-oriented mass merchant, CEO Doug McMillon, during the company’s Q4 earnings call.

The big takeaway: Retention is critical to the success of every retailer’s membership program. That can be challenging. For example, while 18.3% of households had Walmart+ access in December, that share fell 3.2 percentage points two months later after the holiday season.
  • While gas discounts may spur some shoppers to enroll in Walmart+, the retailer needs to ensure that it offers a wide enough array of benefits to keep them enrolled.

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There aren’t many Exxon Mobil gas stations in the Bay Area and Silicon Valley. Because of that, I don’t see a need for people to get Walmart+. However, if the gas discounts included Chevron, Shell, Armco, and Valero, then that’s a major reason for people in the Bay Area/Silicon Valley to get Walmart+.

This is coming from a friend who lives in the Bay.
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Is Your Portfolio in Need of Repair?
It's great to be on the platform and hello to all our fellow investors! In our YouTube market update, we discuss three stocks we think could be part of a recovery strategy: $KHC $BBY $IBM. All three offer solid passive income through high dividend yields.

To watch this week's update, head to https://www.youtube.com/watch?v=cTIO0sguyq8
Let us know what you think! We value the feedback of other investors!

Also take a look at our research service at https://leftbrainir.com/subscribe and new subscribers can enter the promo code: Jarvis59 at checkout for 3 months of our basic subscription at $59/month.
Dividend Dollars Portfolio Update 🔥
The below is a summary of the full portfolio article located here.

This week we did some restructuring to our energy holdings and crossed our first $100 in earned dividends!

Market Recap:
We lost a day of trading this week due to Good Friday. Having the day off was a good ending to a bad week! The S&P lost 2.1%, Nasdaq 2.6%, the Dow was down 0.8%, with Russell making the only gain of 0.5%.

The information technology, health care, financials, and communication services sectors were the S&P’s biggest losers. Downward movement in the information technology and communication sectors were linked to moves in the Treasury market. The 10-year yield went up 12 basis points this week despite economic discussion that inflation was peaking. That discussion was followed by two days of declining rates following big CPI and PPI numbers for March.

The financial sector was down particularly because of earnings missed by JPM and WFC. Other banks for the most part surpassed expectations.

Portfolio Update:
To date, I have invested $8,020 into the account, the total value of all positions plus any cash on hand is $8,494.4. That’s a gain of $474.42 for a total return of 5.92%. The account is down $48.08 for the week which is a 0.56% loss.

This week we received two dividends. $13.77 from $UWMC and $3.17 from $BBY which officially has made this April my best month for dividends yet!

Trades:
Below is a breakdown of my trades this week.

On Wednesday I did some restructuring of the portfolio. I sold my whole position in $EOG and spun a majority of those into a new utilities position in $AY. There are a couple of reasons I did this. The IPCC report came out this week and is pretty grim about the future of our planet. It makes it clear that the devastating impacts of a climate crisis are occurring and the opportunity to curb terrible outcomes are already slipping through our fingers. The report says that greenhouse gas emissions must peak by 2025 to limit global warming close to 1.5 degrees Celsius as targeted by the Paris Agreement. Mitigating climate change continues to a growing and ever important focus for governments, business, and people.

Though the Ukraine conflict is where the world’s attention is at right now. I still believe that oil will be a good business model in the short term and large oil firms will also adapt to the changing environment, thus I am continuing to hold $CVX, but I believe that adoption of more “green” policies are inevitable and will come sooner or later. When this happens, oil companies will come under pressure and renewable energy companies will benefit. It will be a long transition, possibly over decades. But I would rather build positions on renewable energy companies now instead of later. For that reason, I sold my $EOG position and rolled it into a new position in $AY, a sustainable infrastructure company with a majority of its business in renewable energy assets (solar, water, and wind).


April 11th
  • T – added 2 shares at 19.59
  • SMHB – added 1 share at $10.99
  • UWMC – added 3.251476 shares through $13.77 dividend reinvested
April 12th
  • UWMC – added 3 shares at $3.97
  • MMM – added 0.1 shares at $148.70
April 13th
  • EOG – sold position (3.113613 shares) for a 45% gain
  • AY – new position, bought 6 shares at $33.56
  • BAC – added 2 shares at $38.86
  • T – added 5 shares at $19.44
  • SCHD – added 0.126727 shares at $78.91 (recurring investment)
  • XYLD – added 0.201191 shares at $49.70 (recurring investment)
April 14th
  • SBUX – added 0.25 shares at $79.68
  • UWMC – added 3 shares at $3.90
  • SMHB – added 1 share at $10.94
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Buy Rating - Best Buy: High-Quality Stock, Low Valuation
As many may know, Best Buy $BBY is a consumer electronics company that sells consumer tech products and services in North America. We are bullish on the stock.

BBY may seem like a boring business, and it is, to be honest. But, that doesn’t mean you can’t make money off of it.

From one of its low points in 2013, BBY stock has returned close to 1,000% compared to about 250% for the S&P 500, as you can see below.

Of course, those results are from a low point; you’ll never catch an exact low. Also, BBY was a different business back then (declining revenue, lower profitability). However, in the past few years, it has started to grow steadily while increasing its return on invested capital.

It even has higher returns on invested capital than many investors’ favorite mega-cap tech stocks like Alphabet and Meta Platforms (Facebook).

Currently, Best Buy is about 29% off its highs. So, we could be closer to a low point than a high point. This is especially true when considering its already-low valuation (about 10x P/E ratio) and expected future growth. This isn’t like one of the unprofitable, high-flying tech stocks that got beat up after increasing 5x in a year.

This is a real company with real earnings that has been able to remain competitive in a world where companies like Amazon exist.

Read our full TipRanks linked here to see why we like BBY stock at its current valuation! (we're not allowed to post the full article here)

Also, feel free to check out our Substack here
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Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.