Looking Forward To Summer

I'm looking forward to summer and to seeing whether the rally in stocks will continue. Traditionally, the old stock market wisdom is, "In May go away." Some experts were expecting to see continued run this year, as long as the recovery in the economy continues. But from what I've been seeing, it looks like a lot of buyers will be slowing down for the summer months and I'm thinking things will pick up again in August or September. So I probably won't be doing many quick trades.

Usually, during this time of year, I take time to find good quality dividend stocks to add to my long term holdings. This year is likely to be no exception. If the market is taking a break, it will be the perfect time to pick up stocks at lower prices. I may be adding to some of my current holdings like AT&T (T), General Electric (GE), Merck and Co. (MRK) and a few others. Might also buy back in to British Petroleum (BP) and Universal Insurance (UVE) since I think both have good long term prospects and they both pay good dividends. I do still hold both stocks in my IRA account for the long term payouts and growth prospects. Also hoping to pick up more shares of AFLAC (AFL) if I can get them at a decent price. Would also like to unload some of my less productive holdings and re-invest the cash. I'm currently holding extra cash in my money market account in case the market does drop back some, so I will be able to take advantage of bargain priced stocks.

Hope everyone had a great weekend!

Stock Portfolio Update

With such a crazy market since the first of the year, it's easy to just sit on the sidelines and wait for more stability. Always the bull, when it comes to the stock market, I can't help but see opportunity everywhere! My IRA account, which I opened in December, is up 14.5% for the year. AFLAC (AFL) was my best purchase for this account, up an astonishing 67% since my original purchase. I think it will go even higher. Advance America Cash Advance (AEA) earned me a whopping 97% gain for my regular investment account.

So even though it's been a rough ride for the first five months of the year, as far as I'm concerned, it has presented us with a very rare opportunity to make some marvelous short term trades and fantastic long term investments.

I don't want anyone to get the idea that my life has been smooth sailing through this economy. My job shut down on January 10th and I'm still looking for work. I've had to cut back on the amount of money set aside for investing and I've practically stopped buying anything aside from the basic necessities. But I've been through much worse and this too will pass.

Don't Take My Word For It

O.K., so I've been writing since January about how this is the perfect time to get in to the stock market, albeit on a very selective basis. I always search for investments that provide current cash flow and the possibility of future capital gains. For anyone who thought that I couldn't possibly know what I was talking about, check out this article from the Rich Dad Blog by Robert Kyosaki:

When Pessimism Prevails, It's Time to Get Rich

If you go back and read some of my articles for this past year, you'll see that I've been saying basically the same thing Mr. Kyosaki is talking about in this article. I've read most of his books and he is by far my favorite author when it comes to investing, so I was pleased to see that his most recent post is validating a lot of the things I've been writing about. So, don't take my word for it, read what someone who's already made millions has to say.