5%+ Dividend Yield Portfolio: Coping With Existential Dread (May 2019 Review)

Musings
May was a particularly weird month in a weird period for the markets (though I suppose that could be said about most times). The furious rally from the December 2018 lows (spurred by the narratives of a cool-headed Fed and Administration) fizzled spectacularly against the realities of extended valuations and partisan politics. Just how bad was it? (My advice is to have a drink before you look at your monthly statement this month - otherwise your tears might water down your beer!)

Basically, equities around the globe got hammered in unison. My more conservatively flavored portfolio full of value and dividend payers managed to do better, but virtually no one was exempt from the pain (unless you’re into crypto). Of course, 2019 has still been fairly generous to equity investors year to date (with gains in the double digits), but that too might change. I could, of course, throw a mountain of anecdotes (and quite a few statistics) at you about how this market is primed for a major catastrophe, but there is always a mountain of worry to climb. I could also point to plenty of counterevidence that folks should not overreact to (relatively) minor corrections (which are normal for the markets).
However, I’m now starting to grow a bit worried. I wouldn’t call it a full panic (and I’m keeping my assets mostly fully committed), but I have a growing unease that the S&P 500 basically bounced right off the September 2018 high at the end of April 2019 but... Read more