2017 – New Bull Market

Ignore consensus that U.S. capital markets are late cycle, 8 years deep into economic “expansion.” Contrarily, conceptually and technically, consider November/December 2016 as a base for proxy (construe indices’ levels as reversion to mean – return from panic).

Long term base/target prices for popular index averages 18,350/24,750 (DJI) and 2100/2800 (SP500).

A metaphorical fog is lifting exposing promise of rules based economy trumping political gangland paternalisms’ misallocations; consequential “economic pie” enlargement; and, leadership by example with fiscal actions.

Endogenous risk: 1). $20T U.S. national debt. 2). Science and a digital divide in transition requiring understanding of differences affecting economic sustainability in political “infrastructure spending” versus research and development expense, transcending political office and board room reports’ accounting time frames, by those now with power to write checks for either.

Reread December 26, 2015 post here “2016 Savings Allocation (for income).”

2017 Income Portfolio:

Colgate – Palmolive

Cisco Systems

Hershey Co.

International Business Machines

Kraft Heinz Co.

United Technologies Corp.

V.F. Corp.

     Portfolio Yield 2.8%

     Portfolio Retained Earnings 4.4%

     Return From Operations 7.2%


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