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The month that was:
The market kept climbing in March. The S&P 500 went up by about 3%, the Dow went up by about 2%, and the Nasdaq went up by almost 2%. For the first three months of the year, the S&P 500 went up about 10%, which is its best first quarter since 2019. The S&P 500 closed at an all-time high many times during the quarter.
On March 20th, the Fed kept interest rates the same for the fifth meeting in a row. The Fed still predicted three rate cuts in 2024, and the market went up after the announcement. Gold also hit a new record high this month.
An all-time high is the highest price a stock or an index has ever closed at. When the market is at an all-time high, some people get nervous and think it must be about to fall. But all-time highs are actually very common. If the market goes up over the long term, then it has to keep setting new all-time highs along the way. History shows that buying at an all-time high has not been a worse idea than buying on an average day, as long as you plan to hold for many years.
Even so, I don't buy a stock just because the market is doing well. I still look for high quality companies whose prices have come down for reasons I think are temporary. Even when the overall market is at a high, there are always some good companies that are on sale.
Buys -
Bought 40 PFE at $27.19
Pfizer's stock has gone down a lot since the end of the Covid pandemic, because people are buying far fewer vaccines and Covid treatments. Pfizer now pays a dividend of about 6%, and it bought a cancer drug company called Seagen to help it grow again. I bought shares at a low price, hoping the stock would recover.
Bought 30 BROS at $33.59
Dutch Bros is a fast-growing coffee chain that started in Oregon and is opening new stores across the country. Dutch Bros is a growth company, so it does not pay a dividend yet, but it has a lot of room to grow. I started a new position.
Bought 15 PYPL at $64.84
PayPal's stock has gone down a lot over the past few years as it faces more competition from Apple Pay and other payment apps. PayPal has a new CEO who is trying to turn the company around, and the stock is now cheap compared to its profits. I started a new position.
Bought 5 HSY at $197.18
In September and October of last year, I made a few short-term trades in Hershey. The price has kept going down because of high cocoa prices and worries about weight loss drugs. Hershey is still one of the most popular candy companies in America, and it has a growing dividend, so I started a long-term position.
Bought 1 ONON at $28.50
I added one more share to my position in On Holding, which is still growing quickly.
Sells -
Sold 31 NKE at $93.95
On March 21st, Nike said that its sales would go down in the first half of next year, because it is cutting back on some of its older shoe styles. The stock went down about 7% the next day. Nike is facing more competition from newer brands like On and Hoka. I decided to sell my shares and use the money for my other buys.
Thanks for reading my newsletter!