Howdy folks,
Time to start something positive methinks.
Now that the market is down in general which of our favorites is becoming attractively priced? Not that we want to buy at this point in geopolitical time but we need to start our shopping list. Cripes, I was at my favorite watering hole a couple of weeks back with the market off gobs and saw that Adobe was off 3-4% in the FANG swoon and almost spit out my drink. Now things are off more and the downside potential is measurable . . . . ah, but let's start our lists.
Please note that I really love dividends, particularly from companies where I do business (e.g. my utilities, ISP, etc.) and I'm 70 and quite a bit crazy.
This means I can start my list with T, CMS and VZ paying 7, 3 and 4%, resp. In addition, I'm really starting to lust after the FANG stocks, particularly AMZN and NFLX. On the side for giggles, I'm playing both the pot arena and junior silver miners but these are mostly casino money plays.
Thoughts?
and so it goes,
peace,
rono
Comments
I have a few limit orders on stocks but they still have to drop quite a bit, ~15-20% more. Buy new Amazon, add to Apple, Alibaba, United Health Care. I'll be patient.
- While I like gold a lot, a little goes a long way - and I’m at my upper limit now.
- Today switched my real asset fund @ T. Rowe from PRAFX to PRNEX. Tossed in a little cash to boot. It’s still a very small sum. PRNEX, I think, is better run, has a longer history, lower fees and is not quite as heavy on real estate. Stands to benefit if oil ever turns up. Probably some miners in there too. However, it’s been terribly beaten up by the recent slide in oil - as have most commodity rich funds.
Correction: Change “commodity rich” to “commodity poor”.
There you have it from my two most conserative (AMAXX) & (PONAX) to my two most aggressive (PCLAX) & (AOFAX) and somewhere in between is (DWGAX), (INUTX) & (TEQIX).
Cheers,
Old_Skeet
Trying to be brief since rono’s purpose was to elicit some good buys. But re PRNEX: The original concept under which it was marketed (pre-2000) was was as an inflation hedge. Inflation’s been quite low since than, so I sense they’re marketing it now more as pure play on natural resources. It’s just one of four “real asset” funds I hold. I devote 10% (or a whopping 2.5% each) to the area.
To what I wanted to say ... PRNEX has been a poor investment for many years - but ranks very high among its NR fund peers. How’d that happen? The sector it invests in has lagged dramatically over that time. The managers tell you in paragraph 1 of their most recent report that they believe the world is in: “the initial stages of a long term secular bear market” in commodities. (Read: “This ain’t the best fund to buy right now”) Hand it to T. Rowe. Can’t get much more honest than that.
What I really wanted to say: If a fund performs poorly because the sector in which it invests is doing poorly, I can accept that, Not a reason to bail IMHO. But when a fund stinks up the joint because the managers aren’t practicing the discipline and approach which they profess to in their public pronouncements, that’s a different case entirely. Take OAKBX, for instance. Their game has always been capital preservation. They’d have you believe in their reports that they’re passing up the high-flying market leaders and concentrating on protecting you against downside risk. Overweighting cash and bonds when appropriate. And - back 10-15 years ago that was true. A very conservative “singles, bunts, doubles” player.
Recently however they haven’t been true to themselves or their shareholders. Loaded upon GM and BOA over past couple years. Managed to lose around 8.5% (25% more than the S&P) in 2018. Trailed most of their peers by wide margins. That ain’t supposed to happen with a fund like this. That’s the reason I bailed.