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1/20/25

makeyourfamilyrich

As our readers know, we generally are not fundamental analysts or market timers.  We keep score by our constantly increasing dividends and when you focus on the high quality Dividend Champions we believe values will eventually reflect the increasing earnings represented by those increasing dividends.  We recently lost a large real estate sale that we were counting on to infuse capital into our MYFR system of accumulating great American businesses.  The property is back on the market and we have other interested buyers.

 

We sure are feeling positive about the future of American business.  With a new, more business friendly Administration taking over we expect less regulation and we are hoping for a downsizing of government and some relief from the constantly increasing cost of the federal government.  If we can control the deficit and debt better that should relieve pressure on the credit markets resulting in a reduction in interest rates.  We think Donald’s threats to increase tariffs and other actions will have the effect of other countries helping to impede illegal immigration to the US and restraining the development of foreign competition to our domestic industries.  Technological innovation in the US is on a tear and the centrally controlled Asian and European markets will be at an increasing disadvantage to ours.  It’s an optimistic view of things but it’s the way we see it.

 

With limited capital what does it all mean to us MYFR folks?  Friday (1.17) was an options expiration date.  I expect we may start selling more out of the money puts than we might otherwise sell.  That runs the risk of incurring margin debt or possibly bearing the expense of buying to cancel put options if markets decline more than we expect.  We likely will be a bit more aggressive in selling puts on our Dividend Champion Wannabes because that’s where American innovation and ingenuity is best expressed.  Keep an eye on our Daily Diary to see where they are generating all that beautiful supplemental options income.

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