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Market mood swings giv'en me investor mental whiplash
boring bond and not so boring credit portions of my portfolio are holding pretty well... pays to stay diversified... this thing is healthy for the market. too many people chased the same names. this will prevent bubble formation..fwiw
Our house is again playing more in bondland; ....so, far; so good. Equity down to 15% as of the end of February. Two largest equity are currently PRHSX and VSCPX and the equity mixes among FAGIX and LSBDX, in general; with a touch of equity inside of FRIFX.
This whip saw seem to have something to do with low interest rates allowing the small guy to deleverage their personal debt (at reasonable rates) while these same reasonable rates have allowed speculators to access cheap money through margin accounts which has leveraged up hot sectors. Wondering if anyone is keeping track of these margin accounts as this correction unfolds? How about higher rates on these accounts?
all good, catch, glad to hear you're continuing with your proven movements. i don't do momentum or even slow momentum investing, but staying diversified has helped a lot. also, as i get older and wiser (or so i hope), daily noise doesn't affect me much. finally, being still employed and contributing fresh $$ to investment accounts each year is the most helpful. best to you and yours. fa
Our house is again playing more in bondland; ....so, far; so good. Equity down to 15% as of the end of February. Two largest equity are currently PRHSX and VSCPX and the equity mixes among FAGIX and LSBDX, in general; with a touch of equity inside of FRIFX.
margin accounts are priced off the fed rate, so they will stay low for a while. debit balances (i assume that's what you mean by 'margin accounts') are being tracked and have been as of the week ago most elevated since 2007. so the current correction is most likely due to positioning -- you're right. for a fundamental investor not loaded up to the eyeballs on biotech and NTFX, this should be just noise. if the earnings, which started this week, really disappoint across the board, then there is something more sinister going on and might require different assumptions and position squaring. this is not my base case scenario and i am adding to equities today, if only on the margins.
This whip saw seem to have something to do with low interest rates allowing the small guy to deleverage their personal debt (at reasonable rates) while these same reasonable rates have allowed speculators to access cheap money through margin accounts which has leveraged up hot sectors. Wondering if anyone is keep track of margin accounts as this correction unfolds? How about higher rates on these accounts?
Comments
Yogi - "It ain't over til it's over."
Hi,
Our house is again playing more in bondland; ....so, far; so good. Equity down to 15% as of the end of February. Two largest equity are currently PRHSX and VSCPX and the equity mixes among FAGIX and LSBDX, in general; with a touch of equity inside of FRIFX.
Hoping all is well with you and yours.
Take care,
Catch
fa
here's FINRA's statistics:
finra.org/Investors/SmartInvesting/AdvancedInvesting/MarginInformation/p005923