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The Closing Bell ! Wall St. Ends Higher After Fed-Affirming Jobs Report
Reply to @Sven: I guess I think investors are cautiously optimistic. Things are not great, but they are not bad either. And bonds still don't instill high degree of confidence. Would you not rather invest in HCP paying 5 plus % dividend? Hard to pass on that. I know stocks are heated if you look at past 3 years. But not so great past 5 or 10 years. So, think they have a bit more room to run. Particularly certain sectors, like materials and energy, which have been under appreciated. My opinion assumes status quo, so all bets off if some crappy event arrives, which should go without saying.
Reply to @Charles: Jumping into the market when it is hitting all time high is not a good idea. Remember the budget fight will come again in 3 months from now as the can got kick down the road...
Reply to @Sven: Ha! I actually lost out recently taking some money off the table because I feared consequences of the budget/deficit fight. It's OK cause I slept better, but after couple rounds now, starting to think market seriously discounts the "budget fight" threat. I suspect the market will be higher in three months. And, some sectors will be much higher. Let's trade notes again in December.
Reply to @Charles: "but after couple rounds now, starting to think market seriously discounts the "budget fight" threat."
Market has budget fight in one hand and printer in the other. Printer wins and budget fight means more printer. Win/win in market's view. There started to be discussion by Leisman on CNBC that, in the event of default, the Fed would just buy defaulted securities or take other, similar actions. I think that's probably not untrue, but the problem is that continual Fed action in some ways takes pressure off government to try and work together.
HCP/HCN/HTA/Ventas (which I think is VTR, too lazy to look it up), as well as the other health care REITS were particularly creamed by the interest rate move earlier this year. They've recovered somewhat. Ventas is - I think - probably the highest quality, but it isn't the highest yield.
In terms of materials, I kept thinking about BHP Biliton, but missed the move.
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Regards,
Ted
bloomberg.com/video/u-s-private-employment-data-abysmal-swonk-says-eVKMHnYKTQCF_xxSzStMCA.html
Are investors too optimistic??
Market has budget fight in one hand and printer in the other. Printer wins and budget fight means more printer. Win/win in market's view. There started to be discussion by Leisman on CNBC that, in the event of default, the Fed would just buy defaulted securities or take other, similar actions. I think that's probably not untrue, but the problem is that continual Fed action in some ways takes pressure off government to try and work together.
HCP/HCN/HTA/Ventas (which I think is VTR, too lazy to look it up), as well as the other health care REITS were particularly creamed by the interest rate move earlier this year. They've recovered somewhat. Ventas is - I think - probably the highest quality, but it isn't the highest yield.
In terms of materials, I kept thinking about BHP Biliton, but missed the move.