Good morning investors!

Every month we publish our “Portfolio Update” — Edge+ members get a full access look into our portfolios, including holdings, performance, activity and our watchlists for the upcoming month.

Let’s dive in.

Portfolio Update - Mark

For those new here, IE+ subscribers get full access to my monthly dividend portfolio updates, which includes:

• Portfolio Snapshot

• Portfolio Performance

• Stock Purchases

• Stock Sells

• Watchlist

*Note - this is the ONLY place where people can find our entire portfolios.

Portfolio Snapshot

As of the end of June 2024, my portfolio contained 53 total positions, in-line with the prior month.

In June, we saw things slowdown as we entered the summer months when some investors go on vacation and volumes drop, something that was evident throughout the month.

The large cap technology stocks continue to outperform the market and in fact, 77% of all S&P 500 stocks are underperforming the index through the first half of 2024. That stat right there tells you how much of the weight these Mag7 stocks are carrying.

Based on that, you can take the glass half full or half empty approach. The optimistic approach tells us that if we get a broadening out, there are still plenty of stocks out there that are trading at great valuations. On the flip side, if these Mag7 stocks falter, the entire index could go through a sell-off, something that I am sure many investors, long-term investors, would welcome.

Through the first half though, the portfolio is pretty much neck and neck with the greater index, which speaks to the importance of being well diversified.

Rate cuts are getting closer and we could see the first as early as September, which is not all that far away. The key question will be WHY are rates being cut. Is it because we are executing a “Soft Landing'“ and inflation is under control or is it because the economy and labor force is starting to worsen. Each situation could result in differing outcomes for the stock market, so it will be important to pay attention to that and we will do our best to help navigate you along the way.

I continue to look for opportunities in the market, and firmly believe there are still plenty of opportunities to be had.

Monthly Activity

In this section, I detail out any transactions that were made within the portfolio during the month.

Portfolio Update - Chris

Every month, Investor’s Edge+ members get updates to my individual brokerage portfolio, which includes:

• Portfolio Snapshot

• Portfolio Performance

• Stock Purchases

• Stock Sells

• Watchlist

*Note - this update ONLY includes my brokerage portfolio. Retirement accounts, cryptocurrency, real estate and cash/cash equivalents outside of the brokerage are excluded from this update.

Portfolio Snapshot

As of the end of June 2024, my brokerage portfolio contained 57 total positions — 55 stock holdings and 2 options contracts.

It was another good month for the portfolio as it increased +1.7% in June, though once again I did underperform the S&P 500. In fact, my portfolio is now actually underperforming the index for the year.

As I mentioned last month, Mag7 stocks are holding up the market and skewing the overall S&P 500 returns. Mag7 stocks have returned 46.3% this year and when you compare that to the equal weight index’s return of 4.1%, the difference is glaring.

While the S&P 500 continues to be the benchmark, I’m not going to simply buy Mag7 short term so I can boost my numbers when valuations and concentration remain a huge concern of mine.

I am going to stick to my long term strategy and build a strong portfolio that keeps steadily growing month after month. There will certainly be times when I underperform but as my historical returns have shown, my portfolio will outperform in the long run and that’s my goal.

For now, I am going to stick to the plan and remain patient until opportunities present themselves. I’ll continue to do the research and find great names at a even better value. And I will continue to share everything with you all in the newsletters and on the Discord.

Monthly Activity

In this section, I will go through the transactions that were made within the portfolio during the month.

What We Are Watching

If you are looking to see specific stocks that we are watching in July, check out this post from earlier this month:

Closing Remarks

We enter the second half of the year following what was a strong first half with the S&P 500 up roughly 15%. Can we expect that in the second half, likely not, but what is likely is a pullback. Historically we see at least one 10% pullback in the index each year and the most we have seen this year is around 5.5% in April.

Analysts tend to agree based on their 2024 price targets not being much higher, if at all higher, than current levels, meaning they thing we see a pullback and then end close to where we sit now.

The Mag7 stocks have pulled more than their fair share and I would like to see things broaden out here more in the back half, meaning we could still see plenty of upside if we see any sort of rotation.

We will continue to look for new ideas in the market and bring you as much information as we can to give you an EDGE in the markets.

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And don’t forget to LEAVE A COMMENT. Let us know your thoughts on our portfolios, share your watchlist for the month or even just let us know that you appreciate the content.

Thank you, and until next time investors!

Mark & Chris

The Investor’s Edge

Disclaimer

This article is intended to be for educational and informational purposes only. The views described in the article are those of the author’s and should not be construed as financial advice. Perform your own due diligence or contact your Financial Advisor before making any financial investment. I have positions in all of the stocks & ETFs mentioned below as of the publish date. This is a disclosure - not a recommendation to buy or sell stocks.