Retirement Strategy: Remember All Of Our 'Dry Powder'? (Part 24)

 |  Includes: BAC, CVX, DD, DUK, GE, INTC, JNJ, KO, MCD, NLY, O, PG, PM, SO, T, XOM
by: Regarded Solutions

What better way to celebrate the birth of my first grandchild (Luke Conner) than to go on the shopping spree that we have been anticipating for awhile.

We have had some false starts with our bull market correction but I think it is safe to say we are right in the thick of things now. Prior to this period we had limited, if any, opportunities to deploy our cash reserves because the market just snapped right back.

Our "Team Alpha" portfolio consists of ExxonMobil (NYSE:XOM), Johnson & Johnson (NYSE:JNJ), AT&T (NYSE:T), General Electric (NYSE:GE), Annaly Capital (NYSE:NLY), Southern Company (NYSE:SO), Procter & Gamble (NYSE:PG), Philip Morris (NYSE:PM), Intel (NASDAQ:INTC), Realty Income (NYSE:O), Chevron (NYSE:CVX), E.I. du Pont (NYSE:DD), Duke Energy (NYSE:DUK), Coca-Cola (NYSE:KO), Bank of America (NYSE:BAC), and McDonald's (NYSE:MCD).

What Should We Buy?

Just about every stock has shed some points in the recent dip and more could be forthcoming. That means that just about any of our core holdings can be added to now.

In bite-sized purchases I would focus on the stocks that have pulled back the most thus far, or even the ones that I simply want to buy more of.

  • ExxonMobil has retreated to levels I believe make it desirable to add more shares now
  • Johnson & Johnson has had some new drugs approved and is ready to regain their share price momentum
  • AT&T has so much going for it and the dividend is hard to beat
  • Bank of America has dropped like a stone, but they are continuing to repair their balance sheet and I believe this is a strong buy at these levels
  • Intel will continue to grow with the technology leadership sector and is poised to move higher from here

Obviously the entire portfolio can be pecked away at now, and remember what separates us from the pack. We BUY on these dips. We have NO fear, and WE know that we are in this for the long term!

We could see more down days, so don't buy everything all at once. Add maybe 1/2 of what you want to add now and save the rest for another dip.

Once we get our core portfolio back up to speed, we can then start selling calls for those extra pay days!

My Opinion

This is where the rubber meets the road, folks. When the markets are skittish, and the background noise gets louder, is when we open our wallets and begin buying.

Buy low, sell high, we win!

Disclosure: I am long XOM, JNJ, T, O, KO, GE, INTC, NLY, BAC, SO, PG.