Recently, the S&P 500 officially entered a new bull market. At its peak level of 4,425 points, it was up more than 20% from the lows, which is the definition of a bull market. In fact, some particular sectors, like big tech, were up more than 30% from the lows. It has been an incredible run to watch. In this article, I will explore some stocks I bought before and during the latest bull market.
Banks
I was buying bank stocks pretty heavily during this year’s bull market. When prices were rising, banks were one of the only sectors not getting too expensive, so I went ahead and bought some.
The Toronto-Dominion Bank (TSX: TD) is one bank stock I bought on a dip during the Spring banking crisis. In March and April, several U.S. banks failed because they didn’t keep enough liquidity on their books to pay their depositors who rushed to withdraw their funds. Big Canadian banks fell right along with the struggling U.S. regional banks, even though the liquidity situation at TD and other Canadian banks was fine. TD’s Q2 earnings, released after the banking crisis got underway, confirmed that the liquidity situation was quite good. So, I figured that the TD Bank sell-off was overdone, and bought some more of it.
Another bank I bought was Bank of America. That’s a U.S. bank that, like TD, is known for excellent liquidity and risk management. Its earnings grew about 15% in its most recent quarter. Next month, we’ll see if it was able to keep the growth going in Q2.
Semiconductors
Another category of stock I bought early in the 2023 bull market was semiconductors. Specifically, Taiwan Semiconductor Manufacturing (NYSE: TSM). Taiwan Semiconductor Manufacturing is a beaten-down semiconductor name. The company manufactures 59% of the world’s computer chips. Unlike many semiconductor companies, which saw their earnings fall precipitously last quarter, TSM’s earnings were about flat in its home currency (down slightly in U.S. dollars). Overall, Taiwan Semiconductor performed better than any other semiconductor company last quarter. If artificial intelligence (AI) chips end up being as big a deal as people think they’ll be, then TSM will put out another good quarter for Q2.
Big tech
Last but not least, I bought some big tech during the recent bull market. Specifically, Apple (NASDAQ: AAPL). Apple stock is expensive now, but it was pretty cheap when I bought it at $130 near the bottom during the tech stock crash. I bought more of it at slightly higher prices this year. Apple has a great competitive position. The iPhone maker has the world’s strongest brand according to several market research companies, and an integrated ‘ecosystem’ that encourages customers to buy multiple products instead of one. It all adds up to a lean, mean cash machine that has rewarded investors handsomely over the years.
Recently, Apple released the Vision Pro, a brand new VR headset. The company’s first new product category in years has the potential to change the game in virtual reality (VR). If it does, then Apple shareholders should be rewarded.
