Hi guys!
It's been awhile....have been working 6 days. The decline, while (ouch!) it has been good, my portfolio declined 25% less than S&P--that's a good thing! The infrastructure funds I bought this year have been hit harder than I thought they would be. I also saw every fund family now has one, and the top ten holdings are about the same. So, I think it's time to sell one. Also, this dollar going up has hurt things in the overseas area. I wish Europe would just do QE and get it over with so the world can move on. My biggest surprise in the portfolio was CHTTX this year. The girls are doing great with the downturn. The sell list got longer. GASFX --will keep toehold. Selling all (GLFOX, GLPAX, WPFRX. Have too many funds as it is. And, David, I do like your commentary. It's what keeps me coming back, so do what you do. Best keep writing because I will spend the time reading it all and pondering your thoughts.
the Puddnhead
p.s. As I discuss it with Duke (my dog), as he lies aside me, I think he mostly agrees with you. I only rarely get any backtalk from him about you.....but will keep you informed if it changes.
Comments
Thanks, from Duke and me, for the kind words.
David
I bought Brookfield Infrastructure (BIP), to use an example, because I wanted an investment that can be a pure play on vital infrastructure with ability to be nimble - the portfolio of projects it has now may look very different a few years down the line. In the meantime, I get a nice dividend. It went down this week. Nothing has changed with the reasoning - I enjoy owning vital infrastructure, hard/strategic assets. Agricultural infrastructure and rail are other examples. These are things that I can see owning for years.
I'll also continue to own INF and happily just reinvest the nice dividend every month. I guess what the question becomes is why did you buy infrastructure funds? If there wasn't a core reason and you're going to try to move on because its cooled off in the very recent short-term I just think that style of investing - trying to move in and out of what's hot RIGHT NOW quickly becomes tedious for most people, not to mention the iffy longer-term record of most who try to sit and time the market day in/day out.
I bought infrastructure in the early part of this year.....two (2) funds.....NMFIX....check what they own....and returns....you will see what I mean. Bought them both because I didn't know the sector--two is better than one. Check out the family website(s). Now everybody's got one, top 10s mostly the same.....most are new. Is that what might drive the price up? 20 funds buying the same companies. So, I'm selling one.....moving on when the market goes up to new highs again....lol.....
Also, I am looking at bond funds....have none now. It's like when you were a kid, you had to wait for Christmas or birthday to get the thing you want (thanks, mom!)....lol....
Have to wait for the rates to rise some. Again, part of the portfolio stays constant. Some money goes to new ideas. Some moves on a portfolio as a market changes over time. And, Maurice, please no more talk of thousand-point drops. You sent Duke howling out of the room thinking no more treats for the rest of his life! Every dog has his day as funds do. As for dividends, they're OK, but how did they look last year with the russel going up? Everything has a place and a time. Do not fall in love with what you own (except for wife and dogs)....lol.....and maybe a cool, classic car!
the PuddnHead
p.s. If that's trading with hot money, then guilty as charged!
"Bought them both because I didn't know the sector" - I just think own something you believe in as a theme or for some reason that you research. Otherwise, you're just going to dump it when the first thing that slightly seems like a reason comes along.
I'll continue to look at these declines as buying opportunities for all forms of infrastructure investments, among other things. Plus, these funds continue to offer nice divs (although if you don't have a thesis as to why the investment was made, it's easy to sell dividends or not.) I'm not saying love your investments, either, but some sort of connection (thesis, theme, whatever) makes days like the last couple really much less stressful and makes decisions less emotional.
All that said, do what works best for you. I just think when you have a portfolio of "best ideas" (whatever they are and especially if they pay a div), days like the last few are really not that much of a concern. All of this, "Yellen farted, that means interest rates might be going up, so DUMP EVERYTHING interest rate sensitive...." just seems like no way to enjoy the process of investing. I'm not saying buy something and forget about it for a decade, either, simply that trying to manage and move on a very frequent basis based on the winds (even old fart winds) is maybe going too far in the other direction.
There is lots of talk here in what are called strategic income funds. Since you brought up some interest in fixed income funds I would direct you to the excellent resources on this website to search for funds. The threads are full of fund symbols if what posters have bought recently.
I'm a dog lover too. I'm away from home at the present but a Doberman and a dingo are waiting for my return.
The buy was made because of thoughts of .... get this!....inflation! Yep! How 'bout that? Because the Fed will be behind the curve....yep! That's why. And I believe that now as then. How long will it take to bite, who knows? But we've thrown everything at this economy we have, and we're not going to make a mistake now (my view). To the dump point, I have very little cash....can't take advantage of declines.....I'm all in. I also thought I was cutting edge with this infrastructure stuff......silly me. Sometimes, I amaze myself.
the Pudd
I think it's going to vary with the specifics, but I do think that sectors of infrastructure provide fine inflation hedges.
"Global infrastructure includes securities of companies that own, operate, or build
infrastructure assets, such as toll roads, energy distribution, ports, or water
utilities. As with real estate, the replacement value of the infrastructure assets
increases with inflation. Moreover, because many global infrastructure companies
are highly regulated, the contracts they sign often call for adjustments to prices in
response to changes in the local inflation rate. Since global infrastructure covers
many sectors, it can help position a portfolio to target specific sources of inflation,
such as rising energy prices." (http://www.nuveen.com/Home/Documents/Viewer.aspx?fileId=51014)
In terms of replacement value, think of an Archer Daniels Midland and the amount of grain/transport infrastructure/assets, which includes 26,000 railcars - a number comparable to class 1 railroads. Add to that port facilities, terminals, storage, silos and more. You have one of the largest logistics companies in the world and that doesn't begin to take into account all of the other aspects of ADM's business. Whatever one thinks about ADM, how could one begin to replace the supply chain network they've created and at what astronomical cost?
Kinder Morgan has something like 70,000 miles of pipeline in the US and delivers something like a third of the consumed nat gas.
Of course, there's also energy and real estate, among other things.
The Fed has a habit of being late to parties.
Ok....UNCLE!! You guys win. What you say is all true.....can't argue the point.....it stays. It's good to hear that other people think like Duke and I (inflation). John Chisum, don't stay away too long....the pack needs their leader.
the Pudd