The Bitcoin in July, 2022

 

Since the carnage started in April of 2022 with the drop off in the stock and crypto markets, there's more of a positive outlook this week that things will turn around soon and the Markets are showing that but it's too early to say that this stormy season is over yet. 

Crypto and Bitcoin are highly risky and still in it's teenage years of growth compared to the moderate risk I'm involved with in dividend paying stocks/ETF's.

Bitcoin continues to rule over altcoins and there's always that theory in the background that it's price will skyrocket to new record highs with each cycle of major price ups and downs. It turns into a trap and akin to the big gamble for most but these record highs also made some filthy rich like in past cycles so that keeps it popular.

Now, there's a new theory about a new Token coming along some day that takes the crown from Bitcoin and BTC will fall in price and become an altcoin itself. Fast transactions like Visa and using more "Green" power. Some altcoins are working to achieve this but all a work in progress. Some say Ether/ETH could be that coin in the future but as I mentioned ... it's a work in progress in an impatient world.

Conceived on laptops and desktops, new coins and supporting structures are being developed on a steady basis. Too much to keep track of until one rivals Bitcoin some day and the masses take notice.

The crypto market thrives on speculation and the social media "pump and dump" chats. But I've learned to ignore all that and I've been there since it started so I take gains and move them to Stablecoins or cash when they present themselves and know how far it can fall in a hurry at times. Not betting the farm in other words and play with coins/funds I keep aside for the cryptos I don't need to pay the bills.

Vanguard and Blackrock

 

Nearing mid July, 2022 ... gas prices are easing from some from their highs as the price of oil flirts with the $100 USD range. That seems to be the only break in necessary expenses on my end as the price of groceries continue to inch up. Interest rates are expected to hike again this week hitting folks with mortgages the hardest no doubt, if they are on a variable interest rate term or nearing a "renew" of their terms

Central Banks, with their strategies to combat high inflation are not winning yet and when there is eventually some curbing of inflation ... will grocery prices drop in tandem? No

People grumble about it but carry on seeking the happier things in life and entertainment or too busy with family, around the house and work to have time to dwell on it all.

Most folks seek bargains, discounts or a good deal. Being involved in the dividend paying stock market ... I see stocks and ETF's that are rare bargains before the Markets rebound once again. It all looks like a rewind of the big drop of March, 2020 when the pandemic started here in Canada and the US.

Looking at the Vanguard and Blackrock ETF's, they have a long lineup and with some being very popular with folks seeking dividends and low management fees.

There a lot of articles, books and media comparing the companies products and strategies and how to benefit from them.

Most Bloggers I read that focus on dividends, have a portfolio of stocks but usually have one or a few ETF's from Vanguard and/or Blackrock as an addon.

XEI - iShares S&P/TSX Composite High Dividend Index ETF has a Holding of 75 popular stocks with a yield of 3.94% and pays monthly. XEI from Blackrock has some steady growth between the dips like March, 2020 and currently. 

With Vanguard, VDY - FTSE Canadian High Dividend Yield Index ETF also pays a monthly dividend and has a 3.46% yield with 47 popular yielding stocks in Canada. 

Both ETF's come with a low 0.22 MER or fees that management charges. A good savings off the "bottom line' compared to the high management fees out there.

I think the drawback with these ETF's is that the cash distributions fluctuate while some investors prefer to have the same amounts in dividends each month/quarter. Sector and company weighting in the Holdings may not be to the liking of some. But, overall they work and provide a dividend income if desired and there's growth looking at the 3 and 5 year charts.

Those are two personal picks I like while there are a variety of choices to choose from getting into the US, International markets and sectors allowing for risk tolerances.

Dale from Cut The Crap Investing has a great post here about XEI and VDY