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https://seekingalpha.com/article/4334815-retirement-strategy-new-investing-paradigm-may-change-dividend-growth-investing-foreverThe unprecedented decline in consumer spending might signal an evolution of long term investing for retirement.
Value companies tend to be mature and rely on continuous consumer purchasing to continue paying dividends.
As this pandemic lags on, the investment dynamics might evolove for younger generations.
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Specific examples: Energy Sector I used to hold a number of MLP's but I've sold them all off. I now only hold EPD, primarily a midstream natural gas distributor. Lately I've mentioned toying with taking a trading position in XLE as I believe those companies have been excessively oversold. But primarily my future interests lie in the solar and alternative energy direction and this is where my investment dollars are headed.
The QQQ's - All things Internet or the Internet of Things a force not to be denied. Nearly everyone, everywhere has their face buried in a screen of some type (the sad reality) and how much of it is streaming services. About a month ago I mentioned consideration of taking a position on ViacomCBS premised around their streaming services. Analysts thought they were undervalued at $34 after having dropped from $60 something. A merger and owner Sheri Redstone were the main culprits precipitating that drop. I took a position at $32. It dropped further to $30 and I sold but continued to watch. Today it sits at $12 something and I'm not sure it's down falling. More research I guess. But still nearly all things will be online focused and why I'm watching the QQQ's like a hawk.
I still prefer a regular flow of monthly income but if it becomes one of capital appreciation so be it.
Grocery stores are hiring lots of people.
I don't think people are interested in cocooning for the rest of their lives. We might have to wait for a vaccine before people start getting antsy to be out and about. And there might be fewer options when they do.
I'm of the school of 'owning a piece of the broom'. For years, I've tried to own companies that I did business with and that paid a dividend. Examples are my utilities such as CMS (2.8), DTE(4.2), T(7.0), VZ(4.7). And as a secret that I'm sharing again, I've been all over NCV (normally around 10 but up to 17.9) for years.
As for allocation, cripes, the kid pretty much went to the mattresses after 'the Ides of November'. Note that this is also when I had the Serenity Prayer tattooed on the inside of my eyelids so whenever things get too crazy I can just close my eyes.
Since then, I've continued to tamp down our portfolios. Wifey in particular, is very conservatively invested. At the bottom recently, she had only lost 8% [note for the record that she's still very, very pissed]. So this was a victory. [don't tell her about her Roth IRA]. Otherwise, things are good.
That said, a lot of my 'going to the mattresses' has been moving money overseas via int'l and emerging mkt bond funds (PREMX, PRSNX, RPIBX) at Price while adding TRAOX, PRJPX, and Matthews funds MAPCX, MCHFX, and MATFX).
And of course, as usual, the kid is playing the precious metals in various and sundry ways. feh. SLV, SILJ, GDXJ, CEF, and several penny silver miners.
and so it goes,
peace and flatten the curve,
rono
Wife and I are both at Price with our rollover IRAs. I went this way months ago and have let it ride. My bad. My recent buys were at Matthews. Also, we all need to reevaluate our intl holdings. Listening to Ian Bremmer yesterday about the virus and he's saying we will have it easy compared to South America, Africa, India, etc. They are going to get crushed. Ouch.
Take care and be careful my friend,
Rono
VDIGX, VIG, and PRDGX are solid choices. VDIGX has a healthy exposure to health care sector that helped in 2008. Same strategy is also working this year by slightly leading S&P500 index.
Both PREMX and RPIBX were bought years back as part of an overall diversified allocation. I added PRSNX and back around the Ides of November when I was taking a couple of units out of equities. Wife and I are both at Price with our Rollover IRAs with mine being a brokerage account. Between the two accounts I've got bits and pieces here and there. What I'm watching right now is the impact of the virus on most everything. Most of my current play in that regard is in Asia. At Price I added TRAOX and a smidgen of PRLAX for watching. With my brokerage account I'm hitting Matthews with MPACX, MCHFX and MATFX. Otherwise, I'm still heavy on cash and playing the precious metals in various ways - hard, soft, juniors, oh my.
I'm thinking about taking a nibble in Europe and watching the crisis play out.
and so it goes,
peace and flatten the curve,
rono