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Thursday, February 22, 2024

Tell Me Again, The Fed Needs To Cut Rates -- February 22, 2024

Locator: 46875INV.

The Fed needs to cut rates but not to appease investors.

At the close:

From a post on February 15, 2024:

  • the question: has the Fed waited too long to cut rates? The answer: yes.
  • the two observations:
    • the gap between Wall Street and Main Street is widening; and,
    • the gap between Main Street and Oak Street is also widening.

We'll talk about this later tonight if we have time, but I think anyone paying attention can see what I'm seeing.

WTI: up over half a percent; closed at $78.45.

  • Chevron down one cent today, but up 9% this past month:

Enbridge: my problem

  • I've held it forever
  • cost basis is so low, not worth calculating
  • for the longest time, I had automatic dividend reinvestment
    • I stopped that a few years ago
  • dividend: just declared 68 cents / share; historic high
  • according to Google charts, cost basis for ENB bought in 2001 = $7.00 / share
  • that's as far back as Google charts go; I would have started accumulating ENB back in the 1990s
  • so, let's say, cost basis is $5
  • annual dividend at 68 cents / quarter = $2.72 annual
  • 2.72 / 5 = 54% (yeah, I know, there's more to it than that)
  • Enbridge may or may not have much appreciation in its future, but it tends to raise its dividend on a "more than" regular basis; and, 
  • then, of course, there's the capital gains tax if I were to sell

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