PROSPERITY PUB MARKET TALK
Is it too late to get into NVDA? (and how the fact that no one quits smoking during a recession could impact your portfolio)
Fear of Missing Out (FOMO.) It's a strong emotion.
Strong enough to make a sane person do some pretty crazy things.
If you've watched NVDA from the sidelines over the past 18 months, you've probably felt FOMO.
As it marched steadily higher, you probably felt like it was too late to get in.
But then it marched even higher… and again you might have felt like you missed out.
At this point, if you're still watching from the sidelines you might be feeling the tug to finally jump in.
Is it crazy?
I'll be brutally honest: I don't know.
I've seen stocks called "overextended" continue to go up for months or years.
What I can tell you is that I'm holding NVDA. I'm a believer that the market is still bullish until it proves otherwise.
But I can also tell you this: I probably wouldn't be buying it right now if I wasn't already in it.
In other words, I am not the guy who is going to declare that NVDA is ready to crash and burn, but I am also not the guy to say “it’s just the beginning” and recommend going all in on NVDA.
In this kind of uncertainty, I don’t guess. Instead, I turn to where I do have a high conviction.
See, I have a much higher degree of certainty that the 20-30 dividend tickers I'm holding at any given time will continue paying cash automatically no matter what happens next in the market.
They paid out during the 2000 DotCom meltdown.
They paid out during 2008 when high flying stocks were burning to the ground.
And they even paid out in 2020 Covid Crash — the most uncertainty we've ever seen in the market.
Do you remember what it was like watching stocks drop more than 30% in a month?
And still these dividend stocks I hold paid out — and most of them have even consistently raised their dividends through all of those market meltdowns.
In fact, despite high-flying tech stocks getting all the attention, just a handful of strong dividend stocks represent nearly HALF the entire growth of the stock market the last 100 years.
And I believe in them so much that the vast majority of my personal portfolio is in 20-30 dividend stocks that have paid me — and will continue to pay me — through thick and thin.
Now, here's the question I generally get at this point:
"Don’t you feel like you have missed out on the super growth stocks over the past year?"
And the answer is simple: I'm NOT missing out.
I still trade high-growth, fast-moving stocks. I just do it with my smaller accounts.
Because, let's be honest, in fast moving markets, you can generate some pretty extraordinary returns with smaller accounts using options.
But the bulk of my portfolio is in safer, income-producing dividend stocks.
By the way — the fundamental view that high-flying growth stocks are the only way to grow is plain WRONG.
Because if you zoom out 20+ years, dividends stocks ARE growth stocks.
Click to enlarge the table below.
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