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Which way did the goalposts move today? They remove "patient" but downgrade the economy and suggest slower rate increases.
This is all such utter noise.
Here's the thing: am I complaining about what the market just did? No. Am I going to do something based upon what Yellen just said whereas she could say something else next month? Absolutely not.
This whole scramble to trade the Fed statement is ridiculous. People can do what they want, but owning best ideas, collecting dividends and not concerning yourself with the day-to-day is a pleasure.
Scott, you know we're in agreement. My buy's this morning were before she spoke and only to take advantage of adding to my current positions at sale prices.
Scott, you know we're in agreement. My buy's this morning were before she spoke and only to take advantage of adding to my current positions at sale prices.
Absolutely. I'm very much in agreement with you. I think there are still values and I'm adding to a couple of positions here-and-there (BPY, which is trading under book, yields 4.5% and has a wealth of class A real estate globally - added to that in the lower $23's the other day), but I don't find too much that's appealing. Or I don't want to add anymore to certain things.
This couldn't say it any better: "Oil spiked 6% because "The Fed said the economy is slowing"; Stocks are up because "The Fed said the economy is slowing"; USD strength is a signal of the strength of the US economy which "The Fed said is now slowing"; Small Caps hit Record Highs because "The Fed said the economy is slowing"; and Nasdaq Tops 5,000 because "The Fed said the economy is slowing" - really only one thing for it..."
Good timing. I'll have to look into BPY although I am sort of full up on REIT's. Added to AMTG and STWD during the morning slump and off loaded a couple of energy stocks where I am grossly overweight at the height of the afternoon liftoff. HASI is the only new toy I am currently playing with but I left it sitting on the shelf today. And yes, there's many I don't want to add to and none that I care to chase right now.
About those oil/energy stocks - I recently read an article in RollingStone magazine about institutions divesting themselves from same. Maybe that's why Warren Buffett did the same. Anyway, if you'd like to read it for yourselves:
Good timing. I'll have to look into BPY although I am sort of full up on REIT's. Added to AMTG and STWD during the morning slump and off loaded a couple of energy stocks where I am grossly overweight at the height of the afternoon liftoff. HASI is the only new toy I am currently playing with but I left it sitting on the shelf today. And yes, there's many I don't want to add to and none that I care to chase right now.
STWD is a large holding for me and not something that I plan on selling any time soon. I have six real estate companies and don't plan on adding any more.
In terms of renewable energy, look at BEP (Brookfield Renewable Energy), which didn't use to have a US symbol, you used to have to buy the foreign ordinary shares. BEP is, of course, a sister to BIP and BPY and another spin-off from BAM.
As for energy, I continue to think that there are values, although I'd only stick with the majors. As for Canada, CNQ is something like 40% off the highs and there is discussion that they will spin off royalty lands later this year. GBNXF is down nearly 50% off the high and doesn't even produce energy, it's a combo energy services and pipeline co. Yet, they had a record quarter and raised their dividend. CNQ is a newer Fairholme holding so I guess I agree with Berkowitz about something. I've owned it off and on and now have it as a small longer-term position including adds in the mid-20's earlier this year and more recently.
In terms of energy, BX is sort of an alternative play on energy, although as I continue to note, volatile stock (and energy is certainly not a large part.)
"New York, New York, February 23, 2015: Blackstone (NYSE:BX) today announced the commencement of the investment period for its second energy-focused private equity fund, Blackstone Energy Partners II (“BEP II”), with total commitments of $4.5 billion. BEP II received significant interest from both existing and new investors, with demand well surpassing the fund’s $4.5 billion hard cap. Investors in the fund include a diverse group of U.S. state pension funds, corporate pension funds, sovereign wealth funds, insurance companies, endowments, foundations and family offices. "
This couldn't say it any better: "Oil spiked 6% because "The Fed said the economy is slowing"; Stocks are up because "The Fed said the economy is slowing"; USD strength is a signal of the strength of the US economy which "The Fed said is now slowing"; Small Caps hit Record Highs because "The Fed said the economy is slowing"; and Nasdaq Tops 5,000 because "The Fed said the economy is slowing" - really only one thing for it..."
Some interesting paradoxes. All the more reason we small investors shouldn't attempt to time the markets. Let the big boys do so if they want.
I think what we observe often is the big money jumping on a trend and driving a particular market to excess (on both the buy and sell side). The little guy gets the idea a particular market moves only in one direction and swallows the bait - usually at the wrong time. This affects most markets and is difficult to understand except in hindsight. I support being an equal opportunity buyer (diversifying across assets and sectors).
Comments
This is all such utter noise.
Here's the thing: am I complaining about what the market just did? No. Am I going to do something based upon what Yellen just said whereas she could say something else next month? Absolutely not.
This whole scramble to trade the Fed statement is ridiculous. People can do what they want, but owning best ideas, collecting dividends and not concerning yourself with the day-to-day is a pleasure.
Regards,
Ted
http://www.zerohedge.com/news/2015-03-18/fed-growth-cut-unleashes-panic-buying-everything-dollar-plunges-most-2009
Oops. Didn't see Scott's comment. Scott said it first.
http://www.rollingstone.com/politics/news/the-logic-of-divestment-why-we-have-to-kiss-off-big-carbon-20150114
In terms of renewable energy, look at BEP (Brookfield Renewable Energy), which didn't use to have a US symbol, you used to have to buy the foreign ordinary shares. BEP is, of course, a sister to BIP and BPY and another spin-off from BAM.
As for energy, I continue to think that there are values, although I'd only stick with the majors. As for Canada, CNQ is something like 40% off the highs and there is discussion that they will spin off royalty lands later this year. GBNXF is down nearly 50% off the high and doesn't even produce energy, it's a combo energy services and pipeline co. Yet, they had a record quarter and raised their dividend. CNQ is a newer Fairholme holding so I guess I agree with Berkowitz about something. I've owned it off and on and now have it as a small longer-term position including adds in the mid-20's earlier this year and more recently.
In terms of energy, BX is sort of an alternative play on energy, although as I continue to note, volatile stock (and energy is certainly not a large part.)
"New York, New York, February 23, 2015: Blackstone (NYSE:BX) today announced the commencement of the investment period for its second energy-focused private equity fund, Blackstone Energy Partners II (“BEP II”), with total commitments of $4.5 billion. BEP II received significant interest from both existing and new investors, with demand well surpassing the fund’s $4.5 billion hard cap. Investors in the fund include a diverse group of U.S. state pension funds, corporate pension funds, sovereign wealth funds, insurance companies, endowments, foundations and family offices. "
I think what we observe often is the big money jumping on a trend and driving a particular market to excess (on both the buy and sell side). The little guy gets the idea a particular market moves only in one direction and swallows the bait - usually at the wrong time. This affects most markets and is difficult to understand except in hindsight. I support being an equal opportunity buyer (diversifying across assets and sectors).
You have that. People act like the market is broken now when it goes down. "Wait, isn't everything supposed to be green every day?"
"All the more reason we small investors shouldn't attempt to time the markets."
Exactly.