.........well, not much in happy land in many places during the recent days........the last week or so with softness in equity and bonds. 'Course, such a broad statement does imply that there are not areas that are somewhat happy; but not unlike a young person or an adult who sometimes states that they are going to run away from home.........likely from having a bad day, etc.
..........even "investors" have periods when they want to "run away from investments", yes?
Well, your house (investments) is also likely getting its "clock cleaned" from recent market actions.
Some equity market areas during the past month had about 8% down moves and then flattened for a short period of time. But, this has reversed again. India being an example of a big run in the last 12 months +, then down about 8%, but further down May 6 dropping another 2.5% or so. Aussieland also found a large drop (>2%), reportedly due in part to poor earnings in the banking sector.
All investor returns will be different, of course; but the consideration is in place for this house to reduce equity holdings today (May 6) to protect very pleasing returns so far this year from investments in particular in HEDJ. Some healthcare may also be reduced; although the gains from these holdings has been from a period of years and not months.
Ya, I know; don't be a trader or time the markets. I'll have to name this as intuition.
Broad drawdowns will likely not be more than 10%, yes? Or you best guess.
At times, I recall a portion of information displayed upon the "old" hometown movie theatre screen before the main movie............."Preview of coming attractions". Attempting to determine the "coming attractions related to investments".
Well, just some early morning (1 cup of coffee) jabber.
NOTE: this write was started and planned to be posted on May 5, but other schedules changed this.
Regards,
Catch
Comments
My portfolio's holdings, according to M*, are collectively off their fifty two week highs by about five percent. I am not doing much of anything as I have been expecting a pull back for sometime now and with this I have been carrying a good allocation to cash since my recent sell off of my equity spiff position the first part of April and, as I write, I have a ytd gain (portfolio) of about 3.7%
I am planning on a limited watch as we move through the summer and most likely start buying around the edges as we approach fall. By then, corporate earnings should start to improve. Not in a hurry though because fall ... September & October ... where I usually ramp up my equity allocation is now about five to six months away. And, I have got a lot of things planned to do this summer.
Currently, my portfolio's asset allocation, rounded, is about 20% cash, 20% bonds,
50% stocks and 10% other. Within stocks I am about 65% domestic and 35% foreign.
If stocks as measured by the S&P 500 Index dip by about 10% down towards the low 1900's then I start to perk up and do some strong looking. But, we are now only about a mere two percent off the Index's recent high. The Index will have to get down to about the 2010's range before I reduce summer activities and start spending more time watching the markets. Currently, I don't plan to do any selling ... but, I might.
Should my portfolio's assets reach a decline of ten percent off their fifty two week highs ... Well, I am still covered with my twenty percent cash position. Now, if it should go beyond a ten percent decline, then I'll need to start raising my cash position through an asset sell down process to rebalance and raise my cash position.
Signing out ... and, now 'hopefully' gone for the summer to enjoy some R&R.
Old_Skeet