Likely a 5% pullback, but who knows when. It will be a buying opportunity to get in on the bull market. Too much cash on the sidelines, with bonds paying squat, the individual investor has yet to jump in heavily.
I've read several stories lately about the whole Apple love affair. This stock has been so hot for so long, no one really wants to say sell it. They will say that funds and ETFs already own so much, that you probably should be happy with that exposure. A few smaller name writers have been wondering if Apple is in a bubble, and what happens if that bubble bursts. Wish I knew. Right now everything seems artificial. Interest rates are definitely artificially low. That has led LOTS of cash that ordinarily would rest somewhere else into stocks. It just seems to be a questionable situation.
Yep...it is the end of the quarter and time to rebalance...stocks have done pretty good so some will be sold off and moved into fixed...
I think I made a mistake this year and sold some (not all) of my Apple. It's been very good to me. I also sold some (not all) of my Green Mountain Coffee Roasters. They own Keurig. But hey, I'm sittin' in two new cars. 5-0
I sold positions in Apple for over 30 clients (including myself) back in February. I didn't clear out anyone's position in Apple, just trimmed to rebalance. There is still some growth left in that stock this year, and so long as the iPad and iPhone continue to have the "Apple Mystic", the stock will continue to preform. But, given the growth it's had, it was time to reposition. I've owned GMRC since '09, and really kicked myself for not selling it all last year (when it hit its peak). I don't have a huge position in GMCR, but enough to follow the company. Going forward, Keurig sits in the driver seat for the single serving brewers, so they will continue to control the market. Bob Stiller (the founder) knew good coffee, and made some decisions very early on that put them where they are today. The current CEO, Larry Blanford, took over for Stiller in 07, and has lead the single serving revolution. I really like the management team at GMCR, so holding on to the stock has actually turned out to be a good play (although, I'd still like to have sold of some at the peak....but, who wouldn't?!). Anyway, You can never kick yourself for not selling at the high (contrary to my own thoughts), but you can be smart enough to sell at "a" high, and buy back in at a low, if you think it's a solid performer. Oh, and I LOVE playing Craps! If the table gets hot, there's no better place to be in Vegas! The key is knowing when to walk away.
Is this is it? No QE3 coming this summer? Armageddon? Maybe the fact that if you sell your stocks, you'll have nowhere to put the money will hold things together.
Isn't that the truth! Once upon a time you could find shelter in a "passbook" savings account, still get a modest return.
That's a good tip. I do have exposure in a real estate mutual fund, but should probably look more into it. What do you think about actual muni bonds, if you can find them? Anything you respond would not be considered advice.
Depends what you're looking for with a muni-bond. Is it just as a cash alternative? If so, you can't really go wrong with a muni-bond, just don't see much out there (with any decent yield). I like Closed End Funds for REITs. I've been using Federal Reality Investment Trust (FRT) for many years. It's currently yielding about 2.75%. The down side of a closed end fund (for REITS, or anything else) is that it can be a volatile ride (just like any equity). The sector took a hit in 07, but I've been in FRT for well over 5 years, and have been very pleased with how it's performed over that time. There are good open ended REIT funds (traditional mutual funds) out there, if you want to go that route, you just don't get the benefit of them paying dividends (since mangers typically don't'/won't hold a single position long enough to really see the effect in the fund). Just be aware that REITs can be sensitive to any housing news, and know what you're getting into. Of course, none of this is advice...just conversation ;D Edit: If FRT is too high per share, or if you want more of an index following fund, I also use FRI (First Trust S&P Index). It's a little more conservative, and yields about 2%.
I use a lot of Closed End Funds in general, and if you're interested in them, this is a great site for research (on my daily internet schedule/routine): LINK
8Timer, I appreciate your conversation. I've been in the cash doldrums for a few months, thinking I dialed back a little early. It will be interesting to see what the market does in the next few weeks. I will definitely start researching some of these areas. About 5-6 months ago there were some munis out there that I let get by, and now regret it. I'm also a big no-load cheapskate. Anyway, 'ppreciate 'er.
Nothing wrong with being a "no load cheapskate"....so long as my clients don't decide to go that route. The markets were spooked today by Europe (specifically Spain), so I don't know if this is the pull back, or just reaction. Healthcare is always a viable alternative...just stick with the big names (if you're worried about too much movement). And keep an eye on the muni market, something will pop up again.
Today feels like the doldrums are settling in. A couple weeks ago in the ObamaFest area, an ardent supporter was proclaiming the great rebound in the markets this year as an indication that Obama has cured our ills. That further convinced me the market has no upside for quite awhile. I have a big list of stuff to buy on a dip, but don't think I'll do it until fall. or unless we go down another 500-1000+ on the Dow.
I've been on the sidelines awhile, which means I missed out on the Best Quarter Ever. But I still have the feeling we're all just waiting for some minor Archduke to get shot and set a whole bunch of dominoes over in the process.