Consensus views always confound most participants leaving us to view second half 2018 as entry into a new leg for continued record capital market levels, or the abyss. Even considering the tectonic bifurcation of worldwide living standards and economic systems, and, continuous worldwide and domestic dichotomous political split of irresponsibility and fear, we should not be blinded like deer into headlights with forthcoming upward pricing solely due to mere scaling.
Save nuclear weapons last half 20th century, current Wall of Worry (which will be climbed) is greater than any modern era. The glass is half full. “Bubbles,” a consequence of QE policy coexists with new era of goods and services unprecedentedly scaling. Obvious overpricing either by yield relative to cyclical backdrop, unproved income streams, or bureaucratic oppression of dynamisms required, are REITs, 100% leveraged geographically centric utilities and P/E ratios greater than the age of millennials with resumes.
No less important than constructive disruption is yes, additional bureaucracy that eats rather than creates waste. A catalyst to incentivize whole industries to provide new energy and manufacturing is a new world currency regime. One where automatically each year tariffs are adjusted to equalize terms of trade for each country. No WTO, no trade offices, no closed-door decades long favoritisms or zero-sum games. Block Chain (income investors should stay away from cryptocurrency unless gambling)?
Income Portfolio: (yield 2.9%)
The Hershey Company
McCormick & Company, Inc.
NextEra Energy, Inc.
Stanley Black & Decker, Inc.
Verizon Communications, Inc.