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Rolled a couple treasuries that matured over the last couple weeks into a 1year JP Morgan CD at 5.65%. Yes, it's callable, but that doesn't matter to me.
Also, I decided to buy more PRWCX in my 401k account. I've been holding too much MM cash all year, in my opinion. I took some time to look around for a different balanced fund to compliment PRWCX but then decided, why?
With the potential risk of government shutdown in late September, there is no compelling reason to be add equities. Stocks are expensive today. Other sectors besides the large mega-tech stocks are trailing badly.
Will continue to rollover T bills as they mature and may increase allocation.
How far out are you going in duration wth your tbills @Sven if I may inquire? Curious as to whether we will regret NOT going out to 5, 10 years with t notes, looking backwards in later 2024? Just a few years ago, getting 4%+ over 5 years was fairly solid, no? Of course inflation might ding you bigly if you get to cute with it.
Terry Savage, who writes a finance column and has been at if for a long time, was noting, rolling tbills 3, 6 months a time with "chicken money" as she calls it...she's prolly right...
Personally as long as I can get 5%+, I am pushing out as far as that goes with tbills/note, (picked up some 5% 2 year notes recently as well as 1 year tbill)....also looking real close at CBLDX, Crossing Bridge....will prolly step in with 6 figure + by EOY or sooner there....
Terry Savage, who writes a finance column and has been at if for a long time, was noting, rolling tbills 3, 6 months a time with "chicken money" as she calls it...she's prolly right...
Not sure where you are driving at, but I will let MFO posters here to decide if Warren Buffet is rationally rolling over $6 billion chicken dollars into T bills every week. @yogibb and others here considered short term T bills as risk-free instruments. Some even venture out beyond 6 months to 2-5 years. By the way, many money managers are also taking advantages of 5% yield on their cash equivalents.
Addition: sorry that I was cranky. The biggest risk with T bills is when inflation rates exceed treasury yields. They were not attractive until the yields went up in 2022. At some point when the yield curve normalizes again, one needs to move to longer duration treasury notes.
Inspired by @Baseball_Fan's CBLDX suggestion, starting a position. Hate the $49.95 fee at Fido, but love the 8.8% yield on short-term securities. The Fed probably cannot do much additional "tightening" this year. Right? Just in case, I'll add another slug next quarter.
I put several balls in motion today and ended up screwing myself. Sold half of a sizable stock position after it dropped 2% this morning to buy one I’d been watching that was down 3% on the day and close to its one-year low. The one I sold held steady the rest of the day. The one I bought dropped another 1% to end the day down 4%. Umm … I guess this is the reason they invented mutual funds. Bonds really got clocked today. That rattled some equities. A strange day. I’m still better off this year than had I moved to cash. But days like this are difficult.
I really think the professional short sellers are jerking the intermediate (10-year) and longer bonds around. Nasty lot. They tend to gang up. Move in and out on different days. And can really exaggerate what would be normal market driven moves in both directions. My humble take anyway.
Hated to sell the stock I did. A long time favorite. But began to wonder if maybe I was over-stepping with a 10% weighting. Thus, the decision to split that money into two 5% holdings. Might reconsider at week’s end. See how both perform the next few days. If the newer one spikes higher, could sell out and move proceeds back into the former. Comfortable either way.
I am SO happy that we're entirely out of equities and are just trying to not lose too much to inflation with CDs and Treasuries. This market would drive me nuts. (ie- nuttsier than I already am)
Hasn’t been much posted on Putin’s plans to confiscate the still Russia domiciled assets / infrastructure of Western (read: “unfriendly”) nations’ companies still operating there. The FT had a piece on that yesterday, as his final list of seizures appears nearly complete. The big European based international conglomerate I sold half of yesterday happens to be a top candidate for asset seizure. Hard to say how significant those assets still inside Russia are - or the effect on the stock, if any. But it’s one of those things I hadn’t thought about in advance and anyone holding a global company - especially based outside the U.S. needs to consider. OJ is correct about this stuff can drive you nuts.
Added just a few shares to PSTL. Still below target price. Still growing the portion of the portfolio that's in single stocks. Still only 12% of total. Funds and cash = 88%. (BHB div. arrived today. Nice.)
Added XMHQ to the IRA at the beginning of September. It will receive other investments as they are sold off when they are back in the black. No tax-loss harvesting in IRA's.
I'm looking at you TCREX. Remember when real estate was considered an inflation hedge? ROFLMAO.
I'll be selling PRBLX when it gets its head above water. It has become a little too growthy, and volatile, for me. Used to be more like VDIGX.
I am looking at DIVO or DGRW to replace it. I like SPGP, but that is for my taxable investments to pass on.
Added to my spec long-term RKLB position after this week's stock crash. One expects a few launch mishaps along the way (which can be corrected) but I still have confidence in the company and its services/assets.
Yes, I'm waiting until the eagle sh*ts, then I'll throw some $ into TS. I see Steve Eisman* (CNBC) is asserting that the whole bank sector is "uninvestable." For how long? My time-frame runs for years, not months. I don't expect much that is good will happen in the Market until we are into 2025.
Selling 1/3 of my bank loan OEF position on the close. Ugly day for credit including for a change the floating rate ETFs. If I am wrong will buy back. If this is the beginning of a correction will sell more. Unlike in the past cash is no longer trash.
Wish I understood what drives the sometimes “weird” pre-market prices. One CEF I own is reportedly off more than 3% this morning. But a couple attempts to buy it in the premarket on Fido came up empty. No takers at offers I submitted well above what the premarket trading numbers show. One guess is people trying to game the system somehow and lure others into selling low? Of course, my tracker could be flawed. But generally it’s pretty accurate.
Comments
Also, I decided to buy more PRWCX in my 401k account. I've been holding too much MM cash all year, in my opinion. I took some time to look around for a different balanced fund to compliment PRWCX but then decided, why?
Decided to deploy a bit of available cash.
Will continue to rollover T bills as they mature and may increase allocation.
Terry Savage, who writes a finance column and has been at if for a long time, was noting, rolling tbills 3, 6 months a time with "chicken money" as she calls it...she's prolly right...
Personally as long as I can get 5%+, I am pushing out as far as that goes with tbills/note, (picked up some 5% 2 year notes recently as well as 1 year tbill)....also looking real close at CBLDX, Crossing Bridge....will prolly step in with 6 figure + by EOY or sooner there....
Best Regards,
Baseball Fan
Addition: sorry that I was cranky. The biggest risk with T bills is when inflation rates exceed treasury yields. They were not attractive until the yields went up in 2022. At some point when the yield curve normalizes again, one needs to move to longer duration treasury notes.
Edit: it's 4.73% of portfolio total. I'm going to step back and let that thing make some money for me. Sept. div. in a few days.
I really think the professional short sellers are jerking the intermediate (10-year) and longer bonds around. Nasty lot. They tend to gang up. Move in and out on different days. And can really exaggerate what would be normal market driven moves in both directions. My humble take anyway.
Hated to sell the stock I did. A long time favorite. But began to wonder if maybe I was over-stepping with a 10% weighting. Thus, the decision to split that money into two 5% holdings. Might reconsider at week’s end. See how both perform the next few days. If the newer one spikes higher, could sell out and move proceeds back into the former. Comfortable either way.
(OK- how's that for "emphasis" ???)
I'm looking at you TCREX. Remember when real estate was considered an inflation hedge? ROFLMAO.
I'll be selling PRBLX when it gets its head above water. It has become a little too growthy, and volatile, for me. Used to be more like VDIGX.
I am looking at DIVO or DGRW to replace it. I like SPGP, but that is for my taxable investments to pass on.
Trying to be patient.
*"Mark Baum" in The Big Short.
Looks like the CD in my IRA will come in handy when it pays off in October.
Plenty of cash in the taxable to shop with, if I wasn't frolicking in the spondulicks the MM is throwing off.
Edit. Make that 40%.
https://en.wikipedia.org/wiki/Spondulix