What's Up, Doc?

For as long as I can remember, I've wanted a pair of Dr. Martens workboots. Considering my total ignorance of punk rock and grunge, I don't know exactly what inspired this lifelong desire, but I suppose I know counterculture when I see it. Today, I received my first pair of Doc Martens' boots in the mail. Since I refuse, on Scottish-infused principle, to purchase any shoes costing more than 50 USD, I had to wait until I found an oddly-colored one on sale. (Tip: before buying, ensure you understand the differences between British and U.S. sizes--they're not the same.) 

The story of Dr. Martens' is an example of globalization and perfect timing. Though the boots are associated with Britain, the creator was actually a German military doctor named Klaus Märtens aka Klaus Maertens. A partnership with a friend from Luxembourg resulted in the business opening in Seeshaupt, Germany, where their comfortable boots were a hit with older women. That's right--Dr. Martens, now a counterculture fashion brand, succeeded because older women with foot problems cared more about comfort than style. From humble beginnings, eh? 

When a family-owned British boots company noticed the German design in an advertisement, it realized the comfortable soles would be perfect for blue-collar workers and purchased an exclusive license. After altering the heel and adding a yellow welt stitch and a two-tone grooved sole edge, Dr. Martens began production in the U.K. on April 1, 1960. As I said, the timing could not have been better: to be born on the cusp of a counterculture revolution means as long as you maintain quality, your brand will never die. 

A newer style. The company is trying to appeal more to a younger generation.

Sadly, Dr. Martens' lifetime guarantee no longer applies: 

From the 27th of March 2018, the For Life range will be discontinued. Dr. Martens will continue to honor all existing For Life guarantees on purchases made before the 29th of March 2018 and registered within 60 days of purchase. The For Life registration website will be deactivated on or about the 25th of May 2018.

If you bought a pair of boots before March 29, 2018 and registered it, you were the last consumers eligible for the authentic Dr. Martens experience. Being a Johnny-come-lately bloke, I'll be buying another pair in the distant future. On that date, I'll go as original as I can: the no-frills black ones, sale or no sale. 

Time to Reduce Exposure to American Stocks?

I told my U.S.-based family members to raise between 10% and 20% cash in any and all stock/investment accounts. I personally wouldn't mind if my sister and brother-in-law increased their cash/money market holdings to 30%, but they are young, and their youth makes it hard to suggest a more conservative allocation. (It doesn't help that bonds paying interest in U.S. dollars seem to be fairly valued.) My parents, who don't generally listen to me, told me they're already all in cash. 

I am still holding onto my General Electric (GE) shares, along with various REIT and other preferred shares, but I do not see much value in U.S. equities markets as of April 2, 2019. 

Shiller P/E is one useful metric to consider for overall valuation.

I suppose Kraft Heinz Co. (KHC), which I recently bought, looks cheap, but its debt load is considerable, and I don't have many shares of it. I like a few other individual U.S. stocks besides GE, but I allocated a considerable amount of my holdings to GE at an average of approximately $12.50/share, and I'll wait for a turnaround. I do hold a few international companies, but none I like enough to suggest publicly. If you're reading this post, good luck, and do your own due diligence. I am not an oracle of anywhere when it comes to investing. 

Disclaimer: The information on this site is provided for discussion purposes only. Under no circumstances do any statements here represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence. To summarize, I do not provide investment advice, nor do I make any claims or promises that any information here will lead to a profit, loss, or any other result. I am not responsible for any harm arising from following anything construed as advice herein. 

Miscellany

1. S&P 500 closed on 2867 on April 2, 2019, the date of this post. 

2. GE stock is around 9.26/share mid-day April 8, 2019. 

3. KHC is around 33.22/share mid-day April 8, 2019. 

Update on November 7, 2019 

1. S&P 500 closed on 3076 on November 6, 2019. 

2. GE stock closed at 11.02 on November 6, 2019. As far as I know, I have sold all my individual shares, but my positions may change at any time. 

3. KHC closed at 33.14/share on November 6, 2019.

As of November 7, 2019, I have a conservative portfolio, but my positions may change at any time. 

Update on February 1, 2020

The recent correction has caused me to deploy some of my cash. I have bought shares of XOM, CVX, PSX, GT, MUR, and various REITs. My positions may change at any time. You are responsible for your due diligence. 

Update on April 28, 2020

Markets declined substantially in 2020 because of the COVID19 pandemic, hitting a recent low on March 23, 2020 but have since retraced most of their losses. Though indices declined between 10 and 20%, REITs and oil companies declined around 40 to 50%--and have yet to fully recover. I continue to hold banks and oil companies, which are still paying dividends. Facebook's Libra digital currency has not made much progress, indicating USA banks are still strong as long as they co-opt or harness blockchain technology. I have not had General Electric (GE) stock for a while now. As always, my positions may change at any time. You are responsible for your due diligence. 

Update on March 24, 2021

GE stock closed at 12.50/share today. I did not benefit from the full recovery because I sold most or all of my GE shares a while ago. 

KHC closed at 38.23/share today. As with GE, I did not benefit from the full recovery because I sold most or all of the shares a while ago.

The S&P 500 closed at 3892 today. 

American indices have hit all-time highs or close to all-time highs. I have raised considerable cash, but my positions may change at any time. You are responsible for your due diligence.