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Any one else fading this market?

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Comments

  • MikeM said:

    @Ted, I've been buying 1 years through Schwab with similar yields. At least one of them sounds pretty far from home, Bank of Hapoalim. No idea where that is but guessing India also. They are all FDIC insured.


    Israel !

  • Starchild said:

    At 43, I'm riding this out and adding each month. Already have a high % of cash, but don't have good enough karma to dump it all at once. Appreciate the voices of more experienced investors here.

    yes, at 43, try and ride out anything

    I would consider investing much of that cash, fwiw
  • Ted said:

    @MFO Members: ... Franklin Synergy Bank 2.50 ...

    Interesting name for a bank.
  • @Starchild- At 43, I'd indeed recommend riding this out, and a bit after it looks like bottom, start buying on the way back up. Best of luck!
  • Old_Joe said:

    @Starchild- At 43, I'd indeed recommend riding this out, and a bit after it looks like bottom, start buying on the way back up. Best of luck!

    Many thanks on the input gang. I'm not as hard core as you folks, but learning as I go. I'm doing the slow and consistent route in the meantime.
  • edited December 2018
    Hello again,

    Yes, I continue to fade the equity markets by reducing my exposure to equities and raising my exposure to cash and fixed income.

    Now that December is here I am now starting to see a number of my mutual funds make capital gain distributions which I take in cash over reinvesting. This in effect will help me rebalance my portfolio towards its new targeted asset allocation of 20% cash, 40% bonds and 40% equity by reducing equities by about 10% and raising my cash & bond allocations by about 5% each. The 20% cash allocation will provide the needed dry powder for me to do some buying should I feel good opportunity presents itself while the remaining assets continue to be invested and produce more than enough income to meet my 2019 projected income distribution needs.

    The fourth quarter is a good harvest quarter for me within my portfolio where I receive a sum equal to about 40% of what is paid out annually in this one quarter alone. This is the reason that I use the 4th quarter as my scheduled rebalance quarter. Currently, within equities I now favor the traditional defensive sectors of consumer staples, health care and utilities plus a few others such as energy, real estate and communication services for any new money finding its way into equities. These all pay good dividends. Within, my fixed income sleeve I recently added a new position Pimco Income A (PONAX).

    Now being 70+ years in age this is more of an age based rebalance for me than a realignment due to market forces although that is also part of my reasoning for making changes to my asset allocation. I think this is prudent due to my age and also during these uncertain times to carry a higher allocation in both cash and bonds while reducing my exposure to equities

    What works for me might not for you.

    Old_Skeet
  • Howdy folks,

    Lightened up some more today. Again, this is on the margin, but taking profits never-the-less. I cannot see a happy ending.

    and so it goes,

    peace,

    rono
  • @ Old_Skeet: < Currently, within equities I now favor the traditional defensive sectors of consumer staples, health care and utilities plus a few others such as energy, real estate and communication services for any new money finding its way into equities>
    Any funds that catch your eye in communications, would you mind shares ?
    Happy Holidays, Derf

  • I've got another SH call option order sitting out there for January, we'll see if it gets hit.
  • edited December 2018
    @derf: Thank you for your question. One of the all equity funds that I own which has good exposure to the sectors I referenced in my above post is SVAAX. In addition, it has a good yield at about 3.3%. I have owned this fund for a good number of years and have, in the past, found it to be a good performer in down trending markets with a total return over the past rolling ten years of better than ten percent.

    Sorry, I can not help you on a communcations sector fund.
  • @ MikeM. Bank Hapoalim is Israeli. Thank you for investing in my clans bank!
  • @Old_Skeet: Thanks for your reply. I made a buy into the fund you mentioned tonight.
    It looks to be a steady eddy .
    Derf
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