|
|
| Home | Portfolio | Watch List | Newsletter | About | Contact Me | Stock Advisor |
The month that was:
September is usually one of the worst months for the stock market, but not this year. The Nasdaq went up by about 2.7%, the S&P 500 went up by about 2%, and the Dow went up by about 1.9%. Both the S&P 500 and the Dow closed at record highs.
The big news came on September 18th. For the first time since March 2020, the Fed cut interest rates. It cut by half a point, to between 4.75% and 5%. Many people expected only a quarter point cut. Inflation in August fell to 2.5%, the lowest in more than three years, so the Fed decided it was time to focus more on protecting jobs.
In my newsletters last year, I explained how the Fed raised interest rates 11 times to fight inflation. Now that inflation is close to the Fed's 2% goal, the Fed is starting to bring rates back down. Lower interest rates make it cheaper to borrow money, which helps companies grow and helps people buy houses and cars. Small companies, homebuilders, and companies that sell big items like boats and vehicles often benefit the most, because their customers usually need loans.
However, the Fed doesn't want to cut rates too fast. If it does, inflation could come back. The Fed said it will make decisions one meeting at a time, depending on the latest data.
Buys -
Bought 10 MU at $93.49
Micron makes memory chips, which are used in computers, phones, and the servers that run artificial intelligence. AI servers need huge amounts of a special kind of memory, and Micron is one of only three companies in the world that make it. Micron's stock had gone down a lot from its high in June, so I started a new position. Micron reported earnings a few days after I bought it, and the stock went up about 15% the next day.
Bought 6 MGRC at $103.89
McGrath RentCorp rents out portable classrooms, offices, and electronic testing equipment to schools and businesses. Earlier this year, a company called WillScot agreed to buy McGrath, but in September the deal was canceled, and McGrath received a $180 million breakup fee. McGrath has raised its dividend for more than 30 years in a row, and I think it is a good, steady company on its own. I started a new position.
Sells -
Sold 20 MRVL at $71.66
Most of my Marvell shares were bought last year at under $50, so I made a profit of about 47% on them. Marvell has gone up a lot because of the AI boom, and I decided to take some profits. I used part of the money to buy Micron, which is another AI chip company.
Thanks for reading my newsletter!