March 2023 Update

Ashley Nichols - Mar 09, 2023

Money is a tool. It's something that supports your life!

 

Our Portfolio

**Hopefully everyone has a chance to listen to our January podcast. A new episode of the Financial 15 will be available later this month**

No trades were made during the month.

90% of our holdings not only pay dividends but have been growing their dividends.

Our cash is currently yielding 4.5%, our bonds 3.15% and our stocks 2.58%

 

Returns on our 60/40, 70/30 & 80/20 Portfolios

Portfolio Analytics

The following chart shows various analytics on our portfolio:

Soft Landing vs. Hard Landing

The path to a soft landing is mostly the same as a hard landing. Soft landings are preceded by a tightening cycle that coincides with SOFT inflation and EASY lending standards.  Hard landings are preceded by a tightening cycle along with HIGHER inflation and TIGHTER lending standards.

Interesting Charts

 

Technical Comments

https://www.brookstradingcourse.com/price-action-trading-blog/

 

  • The bulls see the selloff from January 2022 as a wedge bull flag (February 24, June 17 and October 13).
  • They got a second leg sideways to up in February, but it reversed into a bear bar.
  • They failed to get a follow-through bull bar and the S&P500 is stalling around the 20-month exponential moving average.
  • The bulls want March to close with a bull body closing near its high.
  • They have a 5-bar bull micro channel. Often, there are buyers below the first pullback below such a strong micro channel.
  • The move down since January 2022 had a lot of overlapping bars. The bears are not yet as strong as they hope to be.
  • They see the move down from January 2022 as a broad bear channel, with the August 2022 high as the last lower high.
  • While the bulls have broken the bear trend line, the bears hope that the recent move up is simply forming another lower high (to Aug 2022) with a flatter trend line.
  • If the S&P500 trades higher, they want a reversal lower from a double top bear flag with August 2022 high and a lower high major trend reversal.
  • While March has traded slightly below the February low, some bears may feel that the February low may not have been adequately tested.
  • The bears want a retest of the March low after the current pullback (bounce).
  • The candlesticks in the last 9 months are overlapping which means the S&P500 likely has transitioned into a trading range phase between 4300 and 3500.
  • The last 4 candlesticks had overlapping bodies with alternating bull and bear bodies. The S&P500 is in a tight trading range.
  • Poor follow-through and reversals are more likely within a trading range.
  • Traders will BLSH (Buy Low, Sell High) until there is a breakout from either direction.
  • Until the bulls can break far above the August 2022 high, the broad bear channel may still be in play.

Millennial Minute

The Bank of Mom & Dad - the bank that never seems to close. We want what is best for our children, regardless of age; but when is it too much? In a world where the cost of living continues to increase and our dollars need to stretch further, it's hard to watch our children struggle. However, you have a retirement to plan for, and there has to be a point where the cashflow eases.

Click here to read this months' article. 

And if you know of anyone who may find this article helpful in their own financial journey, feel free to share it!

Planning

Women often believe that they need significant wealth to have an estate plan or simply don’t need one or put off this important task because they have an overflowing to-do list. However, taking the time to get it done – especially when facing unique challenges – can prove to be invaluable.

Click here to read more about Estate Planning for Women

 

Tax Time!

It's always a good idea to brush up on what you need when it comes to filing your income tax. There could be unclaimed credits or expenses you can file - and don't forget your T Slips!

Click here to get the 2022 Income Tax Return Checklist

And don't forget about your home office expenses! The process has not changed since 2020 and 2021 and you can claim the base of $500, or you can use the detailed method to get a more exact calculation.

Click here to read more about claiming Work from Home expenses