On December 1st, twelve shares of Boeing Company (BA) were purchased for $175.96 each totaling $2,111.49 in stock and $149.11 in cash was left over (from the sale of the previous month’s stock) equaling a grand total of $2,260.6 at the start of December. On Friday December 30th, the 12 shares were sold for $190.73 yielding $2,288.77 in proceeds. Combined with the leftover cash of $149.11, cash totals $2,437.85 heading into January. In August, I re-started trading with $2,005 so this strategy has returned an amazing 21.6 percent in just five months.
For comparison, the S&P 500 exchange-traded index fund, SPY, returned negative 6.4 percent from August through December, so our strategy continues to outperform the broad market. At this point, this simple strategy is outperforming by leaps and bounds.
While the market was down significantly in August and September, it bottomed in mid-October, rallied in November and declined again in December. On December 14th, the Federal Reserve raised interest rates again by one-half of one percent (0.5%) also known as 50 basis points. This increase brought the Federal Funds rate to its highest level in 15 years. Many economists are now expecting a recession with job losses in the new year.
The New Top Stock
Streaming movies and entertainment company Netflix Inc. (NFLX) is the new top stock. It closed Friday at $294.88 so about 8 shares will be purchased tomorrow. The market is closed today in observance of New Year’s Day. Check back on January 31st for an update. Merry Christmas and a Happy New Year!
