We executed the following transaction(s):
On January 2, 2018:
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We established a long position in Merck (MRK) at 6.65% of the portfolio
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We established a long position in Coca-Cola (KO) at 6.65% of the portfolio
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We established a long position in Caterpillar (CAT) at 6.65% of the portfolio
These positions might seem familiar as they are a part of the Dogs of the Dow except they are the top three ranked stocks with the highest p/e ratio. As noted on prior postings for both the NLO stocks and the Dow Jones Industrial Stocks, the highest p/e ratio stocks consistently exceeded the performance of the other categories AND the DJIA. The flip side to this performance seeking is that when the stock market declines then these stocks will decline by a greater percentage.
NOTE: On April 1, 2018, we expected to buy the top three highest yielding stocks from the latest NLO US Dividend Watch List.