Our portfolio updates for the week ending on September 27, 2024 are as follows.
Summary
Since I believe we’ll have some crazy volatility the next couple of months due to the economic climate, I want to make some adjustments to the DRIP for certain stocks in the portfolio.
Volatility means uncertainty for typical stock prices, so it’s best to allow most companies to keep compounding.
You don’t really know what’s going to happen, so you might as well incrementally buy over a period of time to average your cost per share.
DRIP is automatic dollar cost averaging
But more volatility potentially means higher profit opportunities for funds that trade options.
Here we don’t necessarily want to increase our holdings of our high earners as many are also high risk. It makes more sense to take the payouts in cash and put that money somewhere else.
Because of that we…
Turned The DRIP Off For These
- USOY
- ULTY
- CONY
- NVDY
With the cash that accrues, we may increase the position size of stocks we already have or we may start new positions in different stocks.
Turning off the DRIP is a great way to have capital available when good buying opportunities arise without needing to sell off any stock.
And if the market volatility doesn’t provide any opportunities, it’s no biggie because we’ll be socking away mad money into BulletShares while we wait.
>> Why You Should Have BulletShares Instead Of Cash <<
Leaving The DRIP On For These
I’m leaving the DRIP on for YMAX and FEPI to beef up those positions for now, but this could change in the next couple of weeks. I’m not sure if the market is going to bull-out or bear-out.
The recently rate cut, plus October always being a shit-show for our portfolios (we have lost a lot of money every October since 2018) has me upping my risk mitigation for a little while.
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