Inflation COOLS, Portfolio Rebalance, Weekly Recap Issue #11

Hey guys! Let me start off this issue by saying Happy Father’s Day to all the fathers out there.

I hope everyone had a great week in the markets. The past 5 trading days we saw the markets continue to push up to levels we haven’t see since May 2022. We also saw the federal reserve announce a “skip” in interest rates for the month of June, not to be confused with a pause in interest rates moving forward. The CPI (Consumer Price Index) report for the month of May showed a rise of 4%, which is a clear sign of a cooling inflation environment.

If you are new here, my goal is to reach financial freedom through dividend investing and rental real estate. I started sharing my journey to help educate and inspire others to do the same. Join me!

Thanks for taking a few minutes to read my newsletter. I truly appreciate your support. It keeps me going every day.

This newsletter is presented by:

A message from Masterworks…

Microsoft Co-Founder’s $1.5B+ Sale Highlights “Safe Haven” Asset

Last November, Paul Allen’s historic art collection shattered the record for largest-ever sale in auction history.

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State Of The Market

Looking at the $SPY on the daily chart.

The $SPY (S&P 500) closed the week with an increase of 2.22% at $439.46. The $QQQ (Technology ETF) closed the week with an increase of 3.79% at $367.93.

As we see on the chart, the RSI (Relative Strength Index) is running hot at 73.77. If you have been following me and this newsletter, you know that this one one of my favored indicators to determine value. Right now on a hot RSI, many dividend stocks have run up. It’s been difficult to find some sales in the market right now. Whenever the market is running hot, I tend to accumulate cash in my accounts and be ready for the next opportunity to present itself. It should be interesting to see what happens next week. Will we continue to push up and rally or will the market decide to cool down and work off some of that 70 RSI. Like I always say, no one knows but it’s always best to be ready.

Purchases this week

In the past two weeks, I’ve done some spring/summer cleaning in the portfolio that I wanted to share. Believe it or not, I actually sold out of two positions to raise some capital for other opportunities. The two positions I sold out of were $PNNT (Pennant Park Investments) and $DEA (Easterly Government Properties). I’ve been in the negative with both positions for quite some time. I felt that both positions were taking on too much risk and I wanted to alleviate some uncertainty in my portfolio. These moves freed up about $5,300 that I intend on pushing into $SCHD when the appropriate buy zone presents itself. The only other purchases I made this week were $ADC (Agree Realty Corp) and $VGSLX (Vanguard REIT index) in my Roth IRA. A major benefit of using the Roth IRA is that the gains made with your investments will grow TAX FREE! For the 2023 year, you are able to contribute $6,500 to your Roth IRA.

Dividend investing is a great way to build wealth and generate passive income just by owning a share of a company's stock.

And the best part is, it's accessible to anyone - no matter who you are or what your financial background is.

Weekly Tweet Corner

Dividend investing takes time. Building a sizable portfolio and creating an additional source of income for yourself doesn’t happen overnight, but it does happen. My message is always about focus and consistency, because I know that’s what it takes. The more consistent you are over time, the further you will go accumulating wealth through dividend investing. $610 of dividend income this week still blows my mind. Just like the tweet states, when I first started I couldn’t even imagine getting to this level. I’ve always just stuck to my strategy and never let noise from anything throw me off. Develop your habits and keep going! That’s the key.

Thanks so much for reading!

I’m super excited to provide this weekly newsletter so THANK YOU all for being subscribers.

Until next week. Keep the focus and stay consistent!

-Nick Dividend Investor and Educator

Friendly Disclaimer: This is NOT financial advice. This newsletter and the information included is for fun and entertainment purposes only. Always consult with a professional before making any investments.

“Net Return" refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold and past performance is not indicative of future results. See important Regulation A disclosures at masterworks.com/cd.