I was looking at a year-to-date chart of my investments today. I counted six times where the value of my account dropped by over $10,000. This has occurred over a 3 or 4 day period every 5 or 6 weeks. But, each time the investments have bounced back to a higher level. I’ve been buying on the drops and selling only when my price targets are in range. This helps move my investments higher when the market recovers. So far this year I’m up about $68,000, or about $9700 per month. Of course, these are unrealized gains, mainly in a retirement account. Some mutual funds and closed end funds I have held for years and only make minor adjustments. My best performing mutual fund has been the Fidelity Select Medical Technology and Devices Portfolio (FSMEX). This fund has an average return of 22% over the last 5 years. In the last year it has gained 34.68%. It has a 5 star rating with an expense ratio of 0.7%. Right now its at $82.80 per share. Not cheap, but I highly recommend this one.
Keeping an eye on Biden’s infrastructure bill that just passed congress. The bill includes money for the following infrastructure improvements: roads and bridges, electric grid, rail roads, broadband, water systems, Western water storage, public transit, airports, environmental projects, ports and waterways, electric vehicles, and road safety. The largest allocation ($110 billion) goes to roads and bridges. Near the bottom of the list are electric vehicles which get a $15 billion allocation. The second item on the list is the electric grid with a $73 billion allocation. I guess that makes sense, because we need to improve the electric grid before we get too many more electric vehicles on the road. It looks like companies that deal with heavy construction and industrial equipment will benefit from the bill. Steel suppliers like NUE and STLD went up 20% in just the last few days.