I have positions in stocks mentioned in this article.
On this Monday 15th May 2023, three new purchases for the Wealth Accumulated portfolio have landed.
At the same time, President Biden is still trying to negotiate with congressional Republicans a deal to avoid the United States government from defaulting on its debt.
Such a scenario was recently described as ‘potentially catastrophic’ by Jamie Dimon, CEO of JPMorgan Chase.
The US Treasury Secretary and former Federal Reserve chair also chimed in:
The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkableJanet Yellen
The negotiations and potential default are not so important, for the same reasons that Yellen espouses.
What is important is that the portfolio is now fully invested, save a few pennies for sundry expenses.
Why I had to act now to invest 100% into equities
Besides, the window of value is closing.
It was wide open in the fourth quarter of 2022, a year in which equities did not do so well:
It’s official.— D J Thomas (@djthomas) December 31, 2022
The S&P 500 closes down 19.4% for 2022. pic.twitter.com/K7kZKPQBzf
Even though much of the year has passed, there’s still a small window of opportunity to get in at reasonable prices.
Today’s additions are:
- Berkshire Hathaway
- Vanguard’s US Equity Index
Alphabet because I believe they will win the AI race.
Berkshire because it’s Berkshire.
The S&P 500 to protect me from my own hubris.
The most interesting purchase is Alphabet because its earnings skyrocketed due to the pandemic and lockdowns. They have fallen back a little since but not so much to worry about.
I’m not sure that a foldable smartphone will bring in the much-needed boost to earnings, but its continued search dominance – over 90% of the internet – combined with AI features said to be integrated into search results should cement its leadership status.
Welcome to my tech-heavy, US large-cap portfolio.