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RE Funds tank today...any info why?

PETDX down almost 4%
VNQ down 3%
hmm...did someone not pay their mortgage?

Comments

  • Interest rate sensitive stocks down today. MLPs down as well. Concerns over rising interest rates.
  • The funds have been in swoon mode for about a week. Mine is down 1.5% for today's market.
  • scott said:

    Interest rate sensitive stocks down today. MLPs down as well. Concerns over rising interest rates.

    Can't wait for when a concern become a full fledge worry...I need a drink, anyone seen the punch bowl?

  • edited September 2014
    Weekly ETF Gainers / Losers
    Sep 12 2014, 16:13 ET | By: Jignesh Mehta, SA News Editor
    Brazil largest weekly loser.(Commodities?)
    Gainers: VXX +4.23%. GAZ +1.26%. UNG +1.01%. UUP +0.58%. TAN +0.12%.
    Losers: EWZ -10.12%. BRF -8.96%. ILF -7.29%. REMX -5.31%. VNQ -5.21%.

    Overbought market slips as Fed fears set the tone
    Sep 12 2014, 16:20 ET | By: Carl Surran, SA News Editor
    Investors also may have been unnerved by the prospect of next week’s Fed rate meeting, with speculation the Fed may signal the arrival of interest rate increases sooner than expected.
    Much of the damage again came from the energy sector (-1.5%), which tumbled out of the gate and pulled the broader market down with it; Nymex crude slid 1% for the week, and has fallen for 10 of the past 12 weeks.
    Today's session saw better than usual participation with 675M-plus shares changing hands at the NYSE floor.
    The yield on the 10-year Treasury note jumped to 2.61% after beginning the week at 2.42%.
    http://seekingalpha.com/news/1981165-overbought-market-slips-as-fed-fears-set-the-tone

    No Rebound In Sight For Sliding Oil Prices
    By Nick Cunningham | Thu, 11 September 2014 21:33

    U.S. oil production also continues to rise. In June, the U.S. produced 8.5 million bpd, an increase of 500,000 bpd since the beginning of the year. Higher production continues to cut into imports, leaving greater supplies on the global market.
    Perhaps most importantly, global demand has been surprisingly lackluster. The latest data from the U.S. Energy Information Agency (EIA) shows that refined product (gasoline, for example) inventories are increasing – an indication that production is overwhelming consumption.

    A slowing Chinese economy is also putting a damper on crude oil prices. Weak economic data published by the Chinese government showed that China’s import growth slowed for a second straight month, suggesting the economy continues to cool.

    http://oilprice.com/Energy/Oil-Prices/No-Rebound-In-Sight-For-Sliding-Oil-Prices.html

    US Picks up Pace in LNG Race
    This week in energy, the prospect of liquefied natural gas (LNG) exports gains momentum in Washington with final federal approval for two more projects in Louisiana and Florida thanks to a tweaking of legislation.
    The pressure on Washington is indeed growing because the race to the finish for LNG exports is a tight one and will have a major impact on long-term contracts.

    Australian projects in particular are warily eyeing the two new LNG export approvals in the US and Russian progress towards the same, because it may force them to renegotiate long-term contracts already in play due to a future LNG glut.
    This week we also look at Canada’s LNG prospects, and what Keith Schaefer depicts as the countdown to get massive projects off the ground.

    There are at least 14 proposals to export LNG off Canada's west coast, and another one to export Canadian gas down to Oregon and ship it to Asia from there.

    In this heated race, the general consensus is that Washington will have to speed things up a bit more. But the good news is that the ranks of the Democrats are growing with those who believe in US LNG exports, and the general consensus is that we will see an up-tick in the momentum to approve these languishing projects—soon.
    http://oilprice.com/newsletters/free/opintel120914
  • Long term treasuries broke support this morning so in addition to fears about whether the Fed will adjust its language after next week's meeting to suggest higher rates might be coming sooner than previously expected, the technical situation likely caused additional selling.
  • scott said:

    Interest rate sensitive stocks down today. MLPs down as well. Concerns over rising interest rates.

    VPU, the U.S. utilities etf, was hit big today too - down 1.88%.

  • All these concerns driving the real estate market down. Maybe all the nervous ones will be out when and if they actually do rise?
  • bee said:

    scott said:

    Interest rate sensitive stocks down today. MLPs down as well. Concerns over rising interest rates.

    Can't wait for when a concern become a full fledge worry...I need a drink, anyone seen the punch bowl?

    I think the thing is this: if you have any sort of long-term view with these holdings, this doesn't matter, as the move in interest rates last year proved to be a buying opportunity for interest rate-sensitive names.


  • I had my utility funds and reit fund hurt the worst, as Scott stated, the interest rate sensitive ones, and the only two that were up today in my portfolio were two stocks Ive been slowly buying ( WWAV and SKX) that I would like to add to, but they have a lot of momentum right now, will have to wait for them to come down a bit.
  • edited September 2014
    slick said:

    I had my utility funds and reit fund hurt the worst, as Scott stated, the interest rate sensitive ones, and the only two that were up today in my portfolio were two stocks Ive been slowly buying ( WWAV and SKX) that I would like to add to, but they have a lot of momentum right now, will have to wait for them to come down a bit.

    Nicely done on both those choices. WWAV is definitely a solid choice given an added boost by the purchase of Annies by General Mills earlier this week.
  • @bee, generally this kind of investment is only a small portion of your overall portfolio. My ARYVX is about 8% currently because of the success it had prior to this latest downturn. Personally I wouldn't want it much above that.
  • The usual suspects:)
  • MAINX was just flat for me today. DLFNX down -0.27%
    MEASX and PRESX were up by 0.34% and 0.43%. .... PRESX has quite a way to come back, after all the negative stuff going on in Europe.

    Overall, portfolio was down for Friday by -0.16%. Not awful. I've had a few days this week of up and down in tiny bits, mostly down. Portfolio is down from its highest (very recent) ever by -0.7% today. Onward and upward. MAFSX has been a disappointment. MAPIX and MACSX lately getting chopped.
  • @scott I watched SKX for about six weeks after buying 4 pairs of their sneakers. Loved them so much started watching the stock. Watched it go up 15%, held my nose and plunged in with a small order. Felt like a Peter Lynch groupie. Started buying WWAV when I tried Silk Almond Milk and saw my market was always running out. Same thing, but I bought that one a few months ago.
  • edited September 2014
    10-year Treasury ended the week at 2.61%. Only a week ago it was under 2.4%. I think that pretty much sums up what happened to other markets. I saw mostly red, but nothing hit too hard. Bonds down. Commodities down. EM & foreign currencies down. Equities off.

    I'd note that it's the speed and direction of the shift in rates that has roiled markets. Actually, rates are still very low by historical standards.

  • beebee
    edited September 2014
    Scott said:


    I think the thing is this: if you have any sort of long-term view with these holdings, this doesn't matter, as the move in interest rates last year proved to be a buying opportunity for interest rate-sensitive names.

    I have read and understand bond laddering. It seems for long term investors, on days like this, "equity laddering" would be in order.

    @Everyone else...thanks for your chime.
  • The user and all related content has been deleted.
  • The open end junk munis are the last men standing in Bondville it appears and wonder how much longer that can last. Negative language from the Fed Wednesday afternoon may already be baked in the bond market. Heaven forbid if something comes out more negative than expected. It may be time to revisit the bank loan/floating rate arena? If the scenario in the link below comes to fruition we may be seeing 3%+ money market rates in a couple years. I would be pleased as punch and think some of the old timers here would jump at joy at that kind of (almost) risk free yields.

    http://blogs.barrons.com/incomeinvesting/2014/09/12/focus-on-the-feds-longer-term-rate-projections/?mod=BOL_hp_blog_ii
  • Maurice said:

    Bond laddering is certainly an excellent approach for investors who hold for the long term and buy individual issues. Buying or holding bond mutual funds in these uncertain times with a lower duration is another.

    TPINX duration is 1.6 years. They hold 42% cash per M*.
    LSBDX duration is 4.3 years. They hold 8% cash.

    Successful Bond Mutual fund managers will execute bond laddering correctly. Dan Fuss is one I trust has seen a rising interest rate environment before. Many younger bond managers have not. It will be interesting to see which bond funds weather a rising interest rate environment most successfully.
  • edited September 2014
    reality check on long/short funds people are looking to protect them. quite of the few of them have simply been long and therefore kicking butt in their category.

    Take a look at PMHDX. Buyer Beware.

    Both Whitebox funds up.
  • It's my belief that a lot of long/short funds use the short to leverage returns rather than to provide protection.
  • edited September 2014
    Well ... It could have had something to do with the solar storm we had this week ... or, perhaps, it was the result of this weeks harvest moon ... or, perhaps it is the anticipated rising interest rate "storm" to be generated by the central bank. I guess one thought is as good as another. In any event, seems relative strength is on decline on most ot the things that I own within my portfolio with the large excepton being cash.
  • edited September 2014
    Old_Skeet said:

    Well ... It could have had something to do with the solar storm we had this week ... or, perhaps, it was the result of this weeks harvest moon ... or, perhaps it is the anticipated rising interest rate "storm" ... .

    Yes - And don't ya love charts? :)

    Study: Stocks usually lower around time of full moon
    http://www.theidiotandthemoon.com/moontrading.html

    (PS: I tend to go more by the stars. But, when the moon's full it's hard to see the stars and definitely makes investing more difficult.)
  • edited September 2014
    Hi hank,

    Remember ... You were not suppose to tell!!! Just kidding, thanks for the link. Who would have thought one could double their take in trading the full to new moon cycle? And, those stars ... There is Polaris aka the North Star used by many for navigation and then Sirius aka Dog Star and the brightest star to be viewed are two of the best known as I recall.

    I am now gald to know of this study. Indeed, something to give some thought to. I am sure there are those that will take issue with this. I really dont care what the strategy is as long as I can keep walking away form the pay window with cash in hand more times than not.

    Since my swing strategy trading plays have been thin of late ... I might just give this a go.

    Thanks again ... never would have known.

    Old_Skeet
  • I can't think of a single asset class that's not overpriced - with the exception of cash.
  • edited September 2014
    Hi Jim0445,

    The US Dollar "Cash" is currently the high dollar against many others. I am linking the futures where the dollar can be viewed against many others. See Curriencies and move your cursor over the currency, or asset, you'd like to view its price action.

    http://finviz.com/futures.ashx

    Now ... How about the metals (gold & silver) down better than fifteen percent form their fifty two week highs and then there are the commodities, in general, as they seem to be down better then ten percent from their fifty two week highs? But, other than that I am not finding much. And, I am not saying they are now oversold as for I feel they had gotten extremely overbought a while back ... but, they might be of a good value type play when the dollar starts to weaken.
  • Jim0445 said:

    I can't think of a single asset class that's not overpriced - with the exception of cash.

    I added (new)/added to a couple of things a couple of days ago, but I haven't strained so hard to figure out what to do/investment ideas in quite some time. Finding little that's appealing.

  • The user and all related content has been deleted.
  • edited September 2014
    Ok Maurice,

    Thanks for the title ... "Investing by the Stars Made Esay."

    I bit, my book is on the way with an arrival date of 09/18/2014.

    At least ... It should be interesting reading on subjects I find of interest. Both, investing and stargazing. I really enjoy being at the coast as the view of the Milky Way is just great. And, with a harvest moon ... Well, it's a great time to gig for flounder.

    Old_Skeet
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