This week mark a year into COVID-19 pandemic. We saw tremendous drop in equity value followed by extreme rebound. The shift to bear market and shifted back to bull market was likely the fastest one in history. One year ago, our watch list had nearly 200 companies on it. S&P 500 rose 70% in one year and some strategies produced exceptional return far greater than the market. However, this is expected as March 23rd was virtually the bottom of the market. Some companies were trading as if they were going out of business. Below are various strategies performance.
High yield, low P/E, and low P/B produced exceptional gain due to the risk factor coupled with how low their stock price went. As an example, Lincoln Financial (LNC) went from $65 to $17 (-73%) in one month. Unum (UNM) went from $30 to $10 (-65%) in one month. Bigger drop produced bigger rebound.
U.S. Dividend Watch List: March 19, 2021
We pushed through all-time high on major indexes but they couldn’t follow through on Friday. A consolidation at this level would be healthy for the bull to continue its course. There appears to be a shift from growth to value name. If that’s the fact, we see no better place to start your research than with our watch list which contains blue chip name trading at or near their low. Continue reading →
