October 2021 Investing Update

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For the month of October, the DOW gained 1559 points, recovering all of the loss from the previous month. My investments gained 2.57% during the month. Interest and dividend income was $4,138 for the month. The end of each quarter has higher dividends because of stocks and mutual funds that payout quarterly. In the past 30 days I sold Premier Financial (PFC), which is a regional bank, for a $19.52 loss after collecting a $40 dividend. I just felt like the stock was not preforming as I had expected. I replaced that one with Pinnacle West (PNW), which is a utility holding company in Arizona. I also added 100 shares of US Bank (USB). I sold 200 shares of Steel Dynamics (STLD) after Biden announced an agreement to remove import tariffs on European steel. I am still holding 100 shares at an average price of $59.51. With a PE of 5.79 and EPS of 11, it is among the most profitable American steel companies.

I still think we are headed for some selling pressure in the market. Companies that miss their earnings estimates are getting hammered. Several companies that I had been watching and considering as an investment have dropped as much as 30% when their numbers missed expectations. Companies that beat estimates have seen their stock prices increase. I have missed several opportunities to buy shares that increased nicely in the last month. I will be waiting for the next sell off to invest in some of the technology companies that are expected to do well in the coming year. Some of the companies that I am watching are: CHPT, MRVL, WOLF, LCID, MCHP, SIMO, MTSI, NTNX, MIME, just to name a few. Finding an entry point is difficult when so many companies are at or near 52 week highs.

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