Start here.....please place game token on the start square, then draw a card for your next move.
A few preface points:
--- Our house is in retirement mode; meaning no more years to "offset" investment losses via cash flow from employment income. So, yes; what another investor wants or needs in a portfolio will not correlate in full.
--- No conviction to the full premise of one's age in income/bond funds and the remainer in equities. One needs to find capital appreciation with capital preservation wherever it may reside. Is this not always the ultimate goal of an investor?
--- The recent system wide test of possible rising interest rates is now complete. Mr. Bernanke and other Fed. members have performed the "recovery word dance" mantra; at least for now. Deflation is still a major consideration in the ongoing economic war(s). Treasury Sec't. Lew is pushing the Euro area....grow, grow, grow. Japan will maintain their cheap money policy. Sure don't know the outcome of this to the positive side of life. China? Only the recent charts tell the story; but I sure can't guess what is next for any policy there.
So, for equity sectors; is the U.S. currently the best of the global bunch? We know EM/BRIC's and China have had a good thumping for some months now. Recent price movements suggest that the "hot money" may consider these areas as oversold.
'Course, a tough choice is the consideration of anything fundamental towards current investing sectors; versus just the plain fact of money traveling to wherever it may have the happiest return on captial invested.
Many bond sectors recently became short term trapped in the O.D. mode; being Over-Done/oversold in the currrent environment. Equity investments were also tested during the Fed. "tapering" test period.
As to the "Et tu, Brute?", You, too Brutus?; being many of the individual investor folks who supposedly have their cash parked; I am not so certain that they will return to equity areas. Perhaps the amount of money they control really doesn't matter to the market place and the big houses will continue to trade among themselves.
A short and quick summary would continue to suggest that economies are still too anemic in the eyes of the largest central banks, many fear deflation and find the only current path; although perhaps dangerous to the future, is too keep the money gates open.
Just a few thinking outloud thoughts from this house.
Take care,
Catch
Comments
Regards,
Ted
" Japan will maintain their cheap money policy. Sure don't know the outcome of this to the positive side of life."
They voted for more of it. Will there be an eventual bill for it? Probably, but people are so short-term.
" I am not so certain that they will return to equity areas."
There have been major inflows over the last couple of months or more off/and/on - whether or not that's a good thing or bad can be debated, certainly.
"A short and quick summary would continue to suggest that economies are still too anemic in the eyes of the largest central banks, many fear deflation and find the only current path; although perhaps dangerous to the future, is too keep the money gates open. "
Yep. So, given that I would be concerned regarding a fair amount of fixed income or would at least try to have at least a minor allocation to equities.
We're okay here, too.
About 40% equity via VIIIX, VSCPX, DODGX, PRHSX and some equity exposure from FRIFX, FAGIX and LSBDX.
But, we have about 16% cash from earlier bond sales. This is the head scratcher right now and the temptation to add more equity. We've not held this high percentage of cash for 5 years prior. Probably just go equity gambling.
Sadly, the construction project here has shifted time allowances away from the investment arena.
Okay, back to work here.
As noted to Ted:
About 40% equity via VIIIX, VSCPX, DODGX, PRHSX and some equity exposure from FRIFX, FAGIX and LSBDX.
But, we have about 16% cash from earlier bond sales. This is the head scratcher right now and the temptation to add more equity. We've not held this high percentage of cash for 5 years prior. Probably just go equity gambling.
Sadly, the construction project here has shifted time allowances away from the investment arena.
A complex time, this beginning retirement period. I/we are as busy as ever than during the employment period. This is okay with us; as we know too many folks who "don't know what to do". Duh ? I'll have more than enough to occupy my time until I leave this 3rd rock from the sun.
Other unscheduled events also have their place here; as my mother is 88 and m-i-l is 96. Nothing medically serious at the time; but more attention is required to all daily activities.
The original post finds us inclinced to more equity exposure; perhaps via managed balanced funds or perhaps just grab more indexes and just spread the money around.
The temptation to use a dart board passes in my thoughts; as the correlation among too many sectors remains very tight, in my opinion. We surely won't catch all of the top movers and winners, so be it.
As to individual stocks, those days are gone for this fella.
We have a 7.25% annualized return since 2006; and this is in line with our returns since the early 1980's. If our portfolio gets thumped this year, the return will just become another number for the averages. We did well for the past 5 years with a bond oriented mix; but that area will likely be more subdued going forward. Not that I really like all of the equity area either. Looking at some of the core and other etf's available via Fido and I-Shares.
Added note: Several retirement accts will likely be consolidated into existing accts. at Fido. This will require a rework of holdings. Lots of fun to be had with this adventure.
A tough road ahead, I do believe.
Thank you for your thoughts.
Regards,
Catch
re: bank loan fund
I bought some FLOT for the first time last week, and apparently I was not alone:
http://www.forbes.com/sites/etfchannel/2013/07/16/noteworthy-etf-inflows-flot-2/?partner=yahootix