February 2018 Stock Considerations

With the market continuing to melt up and make record highs seemingly every day it has become increasingly difficult deciding where to deploy fresh capital. Wait… What?!?! Wow… what a difference a couple trading days make. That used to be the standard line we used almost every month for a very long time. No more, I guess. It seems that we are getting some early Christmas sales in the market and one shouldn’t fret about market dives, rather use this opportunity to buy that stock you have been watching for a while, perhaps average down on a holding already in your portfolio or simply maintain the course and keep investing as you always have. My plan of action is to continue to make my monthly buy(s) and ride out any near term pain. With that being said, let’s take a look at some of my February 2018 stock considerations.

First up, is a name that has not been popular at all in 2017 and so far in 2018 too and continues to struggle in the near term, General Electric Company (GE). I know there is a lot of uncertainty regarding this stock but seeing it priced well into the mid-teens it is becoming more compelling as a lot of the negative news surrounding this company seems to be baked into the current stock price. The recent market dive has really brought GE into fairly valued territory.

Of course, I continue to look at the battered health REITs once again. Last month I added to my Welltower Inc. (HCN) and LTC Properties, Inc. (LTC) and continue to watch those names as well as Ventas, Inc. (VTRand HCP, Inc. (HCP) too. Rising interest rates and inflation fears have really brought the hammer down on this entire sector and with big price declines comes juicier yields for those with patience to ride out the storm.

I also am looking at the utility sector this month with potential buys in The Southern Company (SO) and Dominion Energy, Inc. (D) being made.

Of course, there are many other names that have suddenly become a lot more attractive. We have witnessed dividend stalwarts like Wells Fargo & Company (WFC) and Johnson & Johnson (JNJ) get dragged through the mud in the recent days. No doubt a lot of sideline money will be seeking some better values, price and yields with this recent decline.

Disclosure: Long GE, HCN, LTC, VTR, HCP, SO, D, WFC, JNJ.

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Ryan Bartel 6 years ago Member's comment

Very neat picks. I am 100% in #healthcare and apartment #REITs, time will tell if I made the right choice long term.