S&P 500 Rallies to Levels Unseen Since 2007

Its now been more than 5 years since we've seen these levels in the Dow and S&P 500 indices. Not coincidentally, bond yields and the VIX have also reached 5 year highs and 5 year lows, respectively.

Recent data shows bond funds are experiencing the highest outflows, and equity funds experiencing the highest inflows, in years. Is this the beginning of a shift to equities, or is this another case of the retail investor getting back in near market tops?

Dividend Growth Portfolio, December and FY2012

We're well into the 2013 year now, and I've been neglecting my blog... Hopefully as January rolls by I will have more time to dedicate towards informative or update posts.

December (and early January) brought a flurry of activity for me. Some of it was fiscal cliff risk driven, and some of it was simple top ups or just taking advantage of dwindling market opportunities. Let me list my transactions for the month, then I'll go over them.

New Purchases
Coca Cola - $56.10
Kinder Morgan Inc - $72
CSX - $70

New Transfers In
Fidelity Spartan 500 Index Fund - $84.82

Sales
Western Union - $87.50

Intrinsic Dividend Changes
Boeing - $25.56 (quarterly dividend increase 10.2% from 44 cents to 48.5 cents)


November 2012 Annualized Dividend: $4237.20

+ $198.10 (from new purchases)
+   $84.82 (from new transfers in)
-    $87.50 (from sales)
+ $25.56 (from intrinsic changes)

December 2012 Annualized Dividend: $4458.18
End of 2012 Goal: $3800 to $4000
Whisper Goal: $4400

Market Gyrations Creating Value and Opportunity

The last few months of the stock market has been very interesting. The S&P 500 is basically right back where it was in August, 3-4 months ago, around 1400. It's gone as high as 1470s, and fallen as low as 1340s during this period. That is about 130 points, or roughly 10%, around its mid point. It's been one heck of a roller coaster ride

A quick glance at the market might not reveal any interesting opportunities, as we're basically 5% from the highs, and we've been taught to wait for pull backs to buy, right? But it is important to remember the market index is made up of many sectors, and each sector contains many stocks, and all together they make up the index. What have the underlying components of the S&P 500 been doing lately? Let's take a look.

Dividend Growth Portfolio, November 2012 Update

Holidays are comin'. Holiday are comin'
Holidays are comin'. Holiday are comin'
Holidays are comin'. Holiday are comin'
Tis the season
Watch out, look around, somethin's comin', comin' to town (coming to your town)
Doo doo doo doo doo, doo doo doo doo
Doo doo doo doo doo, Always Coca Cola (coming to your town)
Something magic, in the light, can you see it, shining bright (shining bright)
Fa la la la la, la la la, la la
Fa la la la la, la la la, la la (It's always Coca Cola)
Holidays refreshments is what we bring
Tis the season, its always the real thing.

It's only fitting that one of the most iconic brands in the history of mankind always is the creator of one of the Christmas time commercial classics.

The Coca Cola story is one of incredible brand value and awareness. This is the kind of stock long term investors love to own. These investments form the core of your portfolio, and you almost never sell them. They're also the investments you buy when shit hits the fan. They won't be the best values (riskier stocks will fall more) but they will be at valuations typically seen once in a generation (like Coca Cola at a split-adjusted $20-$22 back in 2009)

Anyway, onto business! Here's this month's Dividend Growth Portfolio update.