Seriously, we need to take reality as it is and not now we've said it is. This is reality:
Record prices is what America's had for centuries.
Posted on 07/25/2016 4:10:47 AM PDT by expat_panama
Are you tired of stories speculating about when the Federal Reserve will raise interest rates? Maybe it’s time to stop reacting to them, because they can damage your investment portfolio.
If you had panicked last year, fearing a change in central-bank policy would drag down prices of bonds and stocks with high dividend yields, you would have missed out on plenty of income and price gains. (The Fed eventually raised rates, in December, but stocks and bonds today are still near record highs.)
“The market can make you do things at precisely the wrong time. Staying the course during times of volatility is always the best way to go.” Katie Nixon, chief investment officer, Northern Trust Wealth Management...
...From the close on Jan. 29, 2015, through March 11 of that year, the S&P 500 utilities sector had a negative return of 12.8%, and that wasn’t even the sector’s low point for the year.
Do you remember the alarming headlines last year warning about the Fed reversing course and increasing rates?... ...prices have soared.
With mixed U.S. economic signals and financial and geopolitical turmoil around the world...
...On July 18, FBR recommended 16 dividend stocks, not only for dividend yields but for potential price appreciation. Final thoughts
It’s important to discuss possible investment choices with your broker or financial adviser. Ask for reports and then do your own research to consider the strategy of any REIT or dividend stock you are considering purchasing. How viable do you think the company’s business will be over coming decades?
You also need to think about your long-term investing goals...
(Excerpt) Read more at marketwatch.com ...
Seriously, we need to take reality as it is and not now we've said it is. This is reality:
Record prices is what America's had for centuries.
Good morning and welcome to another episode of Up in Lower Volume!
Futures traders seem to say stocks will continue to muddle up and metals down today and we get a breather from econ stats --none today.
We can just sit back & read the news:
Revenge of Unrealistic Expectations - Robert Samuelson, Washington Post
Trump's Econ. Philosophy Tends Toward Chavez - Kevin Williamson, NRO
Someday Central Bank Helicopters Will Crash - Tom Stevenson, Telegraph
Mutual Funds Rise After the Fake Brexit Scare - Jonathon Trugman, NYP
Surprise, Inequality Has Fallen Since '07 - Gary Burtless, RealClearMarkets
In China, A Robot's Place In the Kitchen - Te-Ping Chen, Wall Street Journal
Politico: What Broke Up Media Juggernaut - Luke Mullins, Washingtonian
I am an investor in stocks with 30 years experience. I do not see anything I would buy in this market. Usually, a situation like that does not last long.
I have maxed out my 401K contribution since long before it was called a 401K. (It was a “stock savings plan” back then.) It’s the ideal world. When stock prices are high - you may not be buying much, but what you have is sure worth a lot. When stock prices are low - they may not be worth much, but you’re sure buying a lot.
“I am an investor in stocks with 30 years experience. I do not see anything I would buy in this market. Usually, a situation like that does not last long.”
There’s always something worth buying, but one has to be very careful. Personally, I think market dynamics have changed a lot because rapid electronic trading has made market participation more into a game than an investment strategy. The ‘in by 9, out by 3 (or sometimes out by 9:20) traders make money off of volatility, irrespective of which direction things are going. IMHO this adds significantly increased risk for the rest of us.
“I am an investor in stocks with 30 years experience. I do not see anything I would buy in this market. Usually, a situation like that does not last long.”
There’s always something worth buying, but one has to be very careful. Personally, I think market dynamics have changed a lot because rapid electronic trading has made market participation more into a game than an investment strategy. The ‘in by 9, out by 3 (or sometimes out by 9:20) traders make money off of volatility, irrespective of which direction things are going. IMHO this adds significantly increased risk for the rest of us.
The only way I would be buying in this market is if the Federal reserve dropped money from helicopters on my property.
So I wait...
Would you please add my name to your ping list.
TY
Stocks grow the most, over the long term, but can have long periods of decline.
In my mind, it only makes sense to move funds you plan on using within the next five years out of stocks.
My view as well. Valuations are stretched to say the least. In my humble opinion, the risk/reward ratio is generally not favorable at this time.
Its hard to make money when you overpay for things. I will wait for a significant pullback which will inevitably come.
That said, if you can find a fairly valued company that has catalysts for growth and very strong earnings prospects, that might be an exception in this environment, assuming you plan to hold the stock for a long time.
Please add me to your list.
just don’t complain about your 401K balance if/when the market tanks 30-50%.
pay your money and take your chances.
Bought puts to hedge my long exposure on Friday.
Get out of stocks and bonds while you still can.
Diversify.
If you get out of stocks, you will lose money to inflation.
Those are the only two things my 401k allows unless I pull everything out and pay a huge tax bill. Then what do I do with it? I am moving more into bonds as time goes on.
No money-market option? (and yes, I know they pay squat but better than losing your shirt).
Bond king, Bill Gross, says to get out of bonds.
https://next.ft.com/content/995da266-2e62-11e6-bf8d-26294ad519fc
But if you really want to get into bonds be my guest.
Carl Icahn says the markets are way over priced.
http://www.cnbc.com/2016/04/28/icahn-markets-will-have-a-day-of-reckoning.html
done!
you’re on!
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