Posting a blog for Low-Income investors to get started investing. It is from a request on Facebook to Consuelo Mack's Wealthtrack page post to invite a guess to speak about low-income investing

Dow Jones Industrial Average 21,410  (UP ) Week ending 03/27/2020
S&P 500 2520.00

 The Wilson's, my dad, vintage 1919-1920

Social media is a great incubator of ideas. I was responding to a Facebook post under the WEALTHTRACK site from Carol C. from New York that was interested in Consuelo Mack inviting a guess to address investing for low income investors. So I thought I would give it a shot here. 
      I have a little first hand experience with low income. My father, who was a bus driver, died when I was 5.  I remember doing my mom's taxes back in the late 60's and her income came to $8000.00 a year plus Social Security for me. I had never realized that we were so poor. I never felt like it though,  because my mom Marie, was the best deployer of capital that I have ever known.

I posted a picture of my grandmother Wilson with my Dad and his brother and sisters back from 1920. I guess that most folks were low income during that time period. 

This week on Wealthtrack, Consuelo Mack invited 3rd generation investor Christopher Davis from the Davis Funds.  Wealth Track - Consuelo Mack - Christopher Davis interview click here .  

 Consuelo Mack 

Christopher Davis reflects on his family and how well that they have done with bank stocks which historically have been very good at compounding wealth.  So I will put my low income ideas about how you can get started buying bank stocks as a low income investor.  ****I should note*****  that I am not a Series 7 listed financial adviser , but low-income folks do not usually have a financial adviser ! , so I can only offer the ideas of an amateur investor with 40 plus years of investing experience. I should note, that I am a Value investor and follow that disipline.

So here we go with some low priced bank stocks.

KeyCorp (symbol KEY)  buy 5 shares @ 11.20 = $56.00 total. 
Currently pays a 6.61% dividend

Citizens Financial Group (Symbol CFG) buy 5 shares @19.96 = $99.80 total.  Currently pays a 7.82% dividend

Regions Financial - (Symbol RF) buy 5 shares @ 9.67 = $48.35 total. Currently pays a 6.41 % dividend

Bank of America (Symbol BAC) which was the first bank to let women open accounts!, Buy 5 shares @ $21.60 = $108.00 total

So those are the banking stock ideas to get started. If you want a couple different sector stocks to be diversified to balance out your risk, here are two that I like.

ADT Inc. (Symbol ADT)  Buy 10 shares @ $4.71 = $47.10 .  It pays a 2.97% dividend

Good Year Tire and Rubber Company (Symbol GT) Buy 10 shares @ $6.32 = $63.20.  It currently pays a 10.13% dividend.

Understand that these are turbulent times in the stock market so these prices may move up or down a bit. 

You can open up an account with one of the on-line investing companies. Some offer to give you the first few trades or all the trades free. You will have to do some homework on this.

 Picture of my hero Lou Rukeyser from "Wall Street Week". The reason I started this blog.

Have a wonderful Sunday,

Freewilly

The Perfect Storm - Covid 19 - Saudi-Russia oil dispute - Treasury bills - 10Year. - dropping below 1 percent. Just when you thought that you saw everything, now this rolls out

Dow Jones Industrial Averages 19,173.98  WAY >>>Down  - Week ending 03/20/2020
S & P 500  2304.92   

"The Perfect Storm" 

I have seen a lot of stuff over the last 50 years, but nothing ever that looked like this. Whole industries are being shut down for 30, 60 , 90 days, who knows?  New York, California, Pennsylvania shutting down whole states and people sheltering in place. You could never dream up anything like this. Risk tolerance?  That all went out the window. This was soul searching, gut checking survival mode. You better have had a plan coming into this. Value investing with a durable high quality line up of companies both in my 401K and IRA accounts was my plan. Very little in Bonds, safe liquid stuff all in money market instruments. Do not like bonds here. Rather S&P 500 Index funds.

Still in the short term,  I got crushed just like everybody else. As devastating as it all has been, it has been crazy interesting watching the rotations and movements on a daily basis.
New great deals popping up on a hourly basis with big flashing lights saying ,"buy me Now", then poof disappearing from sight. Extraordinary! 

Well right now , just like in the Perfect Storm movie, we are in a little calm spot in the eye of the storm. Maybe half-way, a little more, towards a market bottom. But those 80 foot waves will be back again on Monday, and this thing is all heading down further. Some will lose there nerve and capitulate and sell.  That will not be me or any of my Freewilly Stockpicker Blog followers. We will be be diving for pearls during the storm. 

Here is what to look for as they pop up at great prices:

Nvidia (Symbol NVDA) is like the Hope diamond of stocks. If you can grab 25, 50, 75 shares go ahead and do it as it dives down. 

Facebook, (Symbol FB).  They are stepping in as "lender of last resort" for the small businesses that are their customers. Friggin brilliant!  a Value stock here with lots of cash and growth on the horizon and Instagram. Damn right!

EOG Resources (Symbol EOG) is the "Apple" of the oil industry with a pristine balance sheet. They can make money with $30.00 WTI oil.  They just cut back on $2 Billion of CapEx spending. Hunker down to own this great company in the oil patch. 

Verizon Communications Inc. (Symbol VZ) - A low cost 5G play focused on wireless and has a rock solid dividend of 4.75%.  Use this stock as a bond yield proxy. Super safe.

Oshkosh Corporation (Symbol OSK) These guys have government contracts to build the replacement vehicle for the US Army and Marines that is replacing the Hummer. It is down 40% from its highs.  Consider this one "Shelter from the Storm".

Kinder Morgan Inc. (Symbol KMI)  They threw the baby out with the bath water. Rock solid company, good balance sheet and lots of insider buying. 

There are many more names that will flash up this week. Think long term, Quality, good Return on equity. The world is not going to end this week and you need to eventually retire , right?

 "Sammy Davis Jr. Jr. - (the dog in) - Everything is Illuminated"

Grab the Tums, Rolaids, Mylanta and Coca Cola syrup.  Fasten your seat belt, lock your doors, roll up the sidewalks,  it is going to be a wild ride. You will be fine.  Don't get scared and please do wash your hands and stay clear of this dreadful virus.

We are all in this together,

Peace

Freewilly