From a look at the futures this morning it looks like the anticipated stock market headwinds are now starting to arrive. In checking both Asia and Europe this morning ... yep ... they were down. In short words the markets are now telling Washington to get with it and get something done ... soon ... or there will not been too many happy campers around. I've started making my shopping list and plan to do some buying in the near term should the S&P 500 Index become more than a dip (5% decline in price) and pull back to 1635 range.
http://finviz.com/futures.ashxHave a great day ... and, Good Investing.
Skeeter
Comments
Regards- OJ
Seems like bad news continues …
Looks like tomorrow, or next, might be the day the S&P pulls back to the 1635 range should things continue on their current course. Since we are now into day eight of the shut down the market seems to be dropping about a percent a day now. I wonder how many of our elected have increased their cash positions and reduced their allocation to equities, within their own portfolios, perhaps looking for a long protracted debate process over the Nation’s budget and debt limit? Thank you … Mr. President and Congress.
Anyway, I am in good shape within my own portfolio as I am currently cash heavy and equity light from my target allocations of cash 20%, income 25%, equity 45%, and alternative 10%. I’ve been happy, thus far, as to how my portfolio has performed concerning this Washington debacle. It will not last forever … and, I am looking at it as a buying opportunity … Not an opportunity to cutout and run. From what I have been reading some are looking at 2014 forward earnings estimates to approach the $120.00 range for the S&P 500 Index while full year 2013 trailing earnings are projected to be around the $108.50 range (we shall see). With a P/E Ratio multiple of 15 then this puts fair value on the Index somewhere around 1625 using trailing earnings. The question for me is not what corporate earnings will do … but, what are their revenues going to do?
I am staying the course as my portfolio easily pays out a sum equal to better than 1.25 percent of its value per quarter, on amount invested … and, historically the 4th quarter has had the better pay out.
Skeeter