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December’s stock market fall attributed to “a glitch”
WASHINGTON (Reuters) - U.S. President Donald Trump on Wednesday played down the stock market’s drop at the end of 2018, calling it a “glitch” and saying the market will again go up once various trade deals are settled.
December was a rough month for investors as many hedge funds liquidated market positions and closed. In addition, many leveraged investors reduced their leveraged market positions as interest rates rose. This put a great deal of selling pressure on stocks. Hopefully, by now, the selling climax has now been concluded and things should be leveling off. I'm not looking to see 2018 stock market highs again anytime soon as (best I can tell) corporate earnings will be ok but not great.
Staying the course within my all weather asset allocation at 20% cash, 40% income & 40% equity. I'm thinking my portfolio's total return will be down this year from its 10 year average of better than nine percent to the four to six percent range as over this time span I've reduced my equity allocation from the 65%/70% range down to the 40% range. Over the long haul cash and bonds can not keep pace with stocks but, for me, they offer some shelter during these current uncertain times. Plus my portfolio kicks off a good income stream with a current yield of about 3.25%. Include my mutual fund capital gain distributions and this puts the portfolio with a distribution yield of better than 5%. As interest rates continue to climb so should my portfolio's yield as I have now positioned it for higher income generation over organic growth. I'm still calling it an all weather allocation but now tilted more towards income generation over growth of principal.
Plus, I'm thinking more market glitches will follow as the Democrats and Republicans continue to spar.
@MFO Members: Trump said, "the market will again go up once various trade deals are settled." Guess what. he's right ! Eat you heart out Hank !!! Regards, Ted
@MFO Members: Trump said, "the market will again go up once various trade deals are settled." Guess what. he's right ! Eat you heart out Hank !!! Regards,Ted
What? Isn’t that exactly what my linked article & excerpt said? Here’s my excerpt from the article again:
U.S. President Donald Trump on Wednesday played down the stock market’s drop at the end of 2018, calling it a “glitch” and saying the market will again go up once various trade deals are settled.
What the f*** is your problem Sir?
BTW - You are the one who announced recently that you sold your equity holdings. Most of us haven’t. Perhaps the real issue here is that another board member other than yourself had the audacity to post a new link / discussion topic?
The key word is "settled" - not made, not promised, but settled. There had been a deal made with Iran, a deal made on global warming, a bipartisan deal with the Senate to fund the government, a deal with the American people to bill Mexico for the wall, a deal with N. Korea to denuclearize Korea, on and on.
Wall Street supposedly does not like uncertainty. It knows that the US cutting deals does little to resolve uncertainty these days.
With respect to prognostications, how's that S&P 3000 working out for you? Perhaps about as well as Dow 36,000 (the author of which at the end of 2017 was again optimistic: "I do think we’ll get to 36,000 soon. Very soon").
The primary 'glitch' causing adverse stock market problems these days happens to be orange-hued and roams the halls of the White House with a phone in one hand and a KFC bucket in the other.
Comments
Staying the course within my all weather asset allocation at 20% cash, 40% income & 40% equity. I'm thinking my portfolio's total return will be down this year from its 10 year average of better than nine percent to the four to six percent range as over this time span I've reduced my equity allocation from the 65%/70% range down to the 40% range. Over the long haul cash and bonds can not keep pace with stocks but, for me, they offer some shelter during these current uncertain times. Plus my portfolio kicks off a good income stream with a current yield of about 3.25%. Include my mutual fund capital gain distributions and this puts the portfolio with a distribution yield of better than 5%. As interest rates continue to climb so should my portfolio's yield as I have now positioned it for higher income generation over organic growth. I'm still calling it an all weather allocation but now tilted more towards income generation over growth of principal.
Plus, I'm thinking more market glitches will follow as the Democrats and Republicans continue to spar.
Regards,
Ted
BTW - You are the one who announced recently that you sold your equity holdings. Most of us haven’t.
Perhaps the real issue here is that another board member other than yourself had the audacity to post a new link / discussion topic?
Wall Street supposedly does not like uncertainty. It knows that the US cutting deals does little to resolve uncertainty these days.
With respect to prognostications, how's that S&P 3000 working out for you? Perhaps about as well as Dow 36,000 (the author of which at the end of 2017 was again optimistic: "I do think we’ll get to 36,000 soon. Very soon").
The primary 'glitch' causing adverse stock market problems these days happens to be orange-hued and roams the halls of the White House with a phone in one hand and a KFC bucket in the other.
Barrack !!. best president ever!!!...should have voted for him 4 or 5 times each election in 2008 2012 2016 and of course 2020..
my brother states this is what pp in SF/cali do, and all the ones that came over border try do to/very successful in SF where he lives though.
wonder why they did not name the Pope in the Vatican though, seems this person help many more people than any other individual personel
in other news, warren buffett highly give apples praises, maybe good buy now