Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Hi guys! Jackson Hole.....I forget the date.....anyone know the date? I know it's August sometime. I'm thinking about maybe selling some interest rate sensitive stuff. There probably will be some fedspeak, and that will drive interest rates. It will be a good time to lay out a timeline maybe for rates going up. The market will react, so I'm going to lighten up on GASFX and GLPAX and see what happens. the Puddn
Hi Joe! Janet has a chance to talk or someone else from the Fed.....do you think they won't? HA! Not me....plenty of TV coverage. I think you will get more insight into the plan....QE ends in October with rates going up next year. The 10-year is so low I can't see it going much lower. GASFX - yes, interest rate sensitive. Has lots of utilities (IMHO)....will keep a toehold to buy some later. I also do believe the market has changed. The only thing that saves it is the Dippers. God bless them as of right now.....I'm all in and that, my friend, needs to change.
Hi Anna! What a cool question! My take is: what's not different? Let's start with no Ben, no stock market run (as last year), QE ending, elections coming, etc....{pause---need a beer}...Ok, back now. Does this mean big change? Probably not. But we are coming to the end game sooner rather than later. the Pudd
During the initial taper tantrum, interest rate sensitive companies dropped quite a bit. That proved to be an excellent buying opportunity for many names. For those who have an investment horizon beyond the short-term, if it happens again (and I would think it would be less of a surprise this time around), it will be another buying opportunity for income/dividend investors. I suppose the question also becomes why do you own/did you buy something like GASFX? Because of the income? Because you liked the energy-related holdings? Both?
Too much attempting to time the market for me - with something like INF, for example, I'll just keep reinvesting monthly divs or look for opportunities to add.
Hi Scott! I bought GASFX as a fracking play in March 2013.....added some more in early summer. It's not what I want since I ran into MLPs. I think they are more the pure play I'm looking for. I do not consider this a core fund but a sector fund as with all funds has its place in a portfolio. If you think interest rates will go up next year (as I do), it just might be a good time to take some profit. As for timing the market, that's not really what I'm doing. I guess maybe I am, but I'd like to think I'm not. I will buy some again as rates go up.
Old Joe, The fire sale you're speaking of.....how long have you been waiting for this "opportunity?" What is your money doing now? Do you think the dippers are going to stand by and do nothing? My point is: as the year goes by, your money makes very little on the sideline. the Pudd
Unlike some others here, for instance Ted, I am not the least bit interested in going for the last possible dollar. We have more than enough for our needs, and my objective is simply to make enough "on the side" to offset inflation. We have been quite successful at that, and have no need to take cash "off the sideline". When (not "if") this market goes on sale, I will be a buyer. I'm in no hurry.
Hi Old Joe! Congrats on winning the game of life! If you have all you need, what you are doing is a smart move. To know how much and when to put $$ at risk.....someday I also hope to be there. Now, off to work I go again! Congrats and God bless! the Pudd
Hi Scott! I bought GASFX as a fracking play in March 2013.....added some more in early summer. It's not what I want since I ran into MLPs. I think they are more the pure play I'm looking for. I do not consider this a core fund but a sector fund as with all funds has its place in a portfolio. If you think interest rates will go up next year (as I do), it just might be a good time to take some profit. As for timing the market, that's not really what I'm doing. I guess maybe I am, but I'd like to think I'm not. I will buy some again as rates go up.
Old Joe, The fire sale you're speaking of.....how long have you been waiting for this "opportunity?" What is your money doing now? Do you think the dippers are going to stand by and do nothing? My point is: as the year goes by, your money makes very little on the sideline. the Pudd
I like MLPs, although I think there are other, little plays on fracking (rails, waste cleaning - the latter in things like Ecolab) that are worth exploring. Rails have come out with pretty exceptional earnings so far, with Canadian National (CNI) last night and Canadian Pacific (CP) up big after last week's earnings. You're not going to get the same dividends as the pipelines, certainly, but obviously you do get diversification. I'll also note that Canada has a number of great energy names that have been ignored in recent years while everyone was all about fracking. Suncor (SU) and Canadian Nat Resources (CNQ) have done terrific this year, but that's after a couple of weak years.
Also, there are a few names in Canada that are very "MLP-like" without the K-1, including Enbridge Income (EBGUF.PK) and Inter-pipeline (IPPLF.PK) Both face foreign withholding tax on dividends, but pay dividends monthly rather than quarterly and you should probably be able to write off the foreign tax (check with your tax planner.) Inter-pipeline has had a pretty exceptional track record.
I am a little concerned about the fracking theme, as I've discussed before.
I hate the MLP k-1's, but they're not awful if you use one of the programs (Turbotax)
In terms of buying because "dippers" are....meh. I really don't like buying because it's a "TINA" market ("there is no alternative" .... so buy), that never ends well. I'll continue to buy specific things because I feel that they are long-term themes and provide a nice dividend while I wait. I'm really not seeing many opportunities today, aside from some names that I am considering but are really sort of "second and third tier" ideas. Some things I like and would be interested in owning are expensive.
Hi Scott! I like what you're writing....but, again, I'm in a 401 company plan with a brokerage account, so mutual funds are about it, pal. Sorry to say but I was thinking about FIDO Canada and their select transport....but have done nothing yet. The MLPs do hold Canadian stuff......not sure what exactly without looking. I'm not worried yet about fracking. Did you know only about 225 pipelines are in the U.S.? And, guess what? They ain't where they should be.....that's why I think there's time. But, really, who knows when people move on to the next thing? The game is over.....last year, I, too, was a dipper. Got home from work at 3PM, so I bought all the dips. This year, I work 'til 5PM.....no buying....oh well. I, too, am about out of ideas. Last year, it was R2K (Russell) and health care. This year, MLPs and infrastructure.....was going to play Europe on Dragi comments. But I did not. Thought about Japan, but, alas, did nothing. Only Asia...I own MAPIX and will hold (its core). Want to go into Latin America, but it all looks like crap. Was buying silver coins, but that's gone up too. So when you don't know what else to do, sell some 'cause you know Jimmy Cramer says. The Puddn
Comments
Janet has a chance to talk or someone else from the Fed.....do you think they won't? HA! Not me....plenty of TV coverage. I think you will get more insight into the plan....QE ends in October with rates going up next year. The 10-year is so low I can't see it going much lower. GASFX - yes, interest rate sensitive. Has lots of utilities (IMHO)....will keep a toehold to buy some later. I also do believe the market has changed. The only thing that saves it is the Dippers. God bless them as of right now.....I'm all in and that, my friend, needs to change.
What a cool question! My take is: what's not different? Let's start with no Ben, no stock market run (as last year), QE ending, elections coming, etc....{pause---need a beer}...Ok, back now. Does this mean big change? Probably not. But we are coming to the end game sooner rather than later.
the Pudd
Too much attempting to time the market for me - with something like INF, for example, I'll just keep reinvesting monthly divs or look for opportunities to add.
I bought GASFX as a fracking play in March 2013.....added some more in early summer. It's not what I want since I ran into MLPs. I think they are more the pure play I'm looking for. I do not consider this a core fund but a sector fund as with all funds has its place in a portfolio. If you think interest rates will go up next year (as I do), it just might be a good time to take some profit. As for timing the market, that's not really what I'm doing. I guess maybe I am, but I'd like to think I'm not. I will buy some again as rates go up.
Old Joe,
The fire sale you're speaking of.....how long have you been waiting for this "opportunity?" What is your money doing now? Do you think the dippers are going to stand by and do nothing? My point is: as the year goes by, your money makes very little on the sideline.
the Pudd
Congrats on winning the game of life! If you have all you need, what you are doing is a smart move. To know how much and when to put $$ at risk.....someday I also hope to be there. Now, off to work I go again! Congrats and God bless!
the Pudd
Also, there are a few names in Canada that are very "MLP-like" without the K-1, including Enbridge Income (EBGUF.PK) and Inter-pipeline (IPPLF.PK) Both face foreign withholding tax on dividends, but pay dividends monthly rather than quarterly and you should probably be able to write off the foreign tax (check with your tax planner.) Inter-pipeline has had a pretty exceptional track record.
I am a little concerned about the fracking theme, as I've discussed before.
http://www.mutualfundobserver.com/discuss/discussion/13960/some-concerns-with-the-fracking-theme
I hate the MLP k-1's, but they're not awful if you use one of the programs (Turbotax)
In terms of buying because "dippers" are....meh. I really don't like buying because it's a "TINA" market ("there is no alternative" .... so buy), that never ends well. I'll continue to buy specific things because I feel that they are long-term themes and provide a nice dividend while I wait. I'm really not seeing many opportunities today, aside from some names that I am considering but are really sort of "second and third tier" ideas. Some things I like and would be interested in owning are expensive.
I like what you're writing....but, again, I'm in a 401 company plan with a brokerage account, so mutual funds are about it, pal. Sorry to say but I was thinking about FIDO Canada and their select transport....but have done nothing yet. The MLPs do hold Canadian stuff......not sure what exactly without looking. I'm not worried yet about fracking. Did you know only about 225 pipelines are in the U.S.? And, guess what? They ain't where they should be.....that's why I think there's time. But, really, who knows when people move on to the next thing? The game is over.....last year, I, too, was a dipper. Got home from work at 3PM, so I bought all the dips. This year, I work 'til 5PM.....no buying....oh well.
I, too, am about out of ideas. Last year, it was R2K (Russell) and health care. This year, MLPs and infrastructure.....was going to play Europe on
Dragi comments. But I did not. Thought about Japan, but, alas, did nothing. Only Asia...I own MAPIX and will hold (its core). Want to go into Latin America, but it all looks like crap. Was buying silver coins, but that's gone up too. So when you don't know what else to do, sell some 'cause you know Jimmy Cramer says.
The Puddn