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Upsetting Good news

"Next week marks the sixth anniversary of the start of the one of the greatest bull markets in history. I’ve called this rally the most hated bull market in history, since its length and height have consistently defied the predictions of so many. Every new high seems to disappoint the forecasters of doom and gloom. It’s odd how good news upsets some people" Eddy E


  • Very true.
  • So are you buying then?
  • The user and all related content has been deleted.
  • edited March 2015
    Maurice said:

    Six years is a while. But this bull market has been hardly frothy.

    I'd like to see a 5-10% pullback before buying. But I wouldn't count on it.

    You're getting quite the pullback in yieldy sectors - REIT index down 3%, but some closer to 5%.

    I completely don't have an interest in AT & T, but if one did as a yield play, it's compelling down due to AAPL replacing it in the DOW (and the market being terrible on top of that.)
  • Have good exposure to AT&T due to large position in HDV. Used to be HDV's largest holding, but now XOM is highest.
  • edited March 2015
    So are you buying then?
    Well, I've bought ... back in late January ... all-in right now.

    BAC largest holding, 25% of total portfolio.
    AIG & OAK at 15% each.
    HCP & AA at 10% each.

    Heavy financials, obviously.


    No cash, well small amount indirectly via FAAFX.

  • Looks like you held the winning hand yesterday Charles and you are nothing if not focused.
  • edited March 2015
    Ha! Was holding my breath a bit on the stress tests.

    But worked out pretty well. If bittersweet, given rest of market sold off yesterday. And AA and HCP have both been downers lately, downgrade targets.

    February was a great month for market with SP500 up 5.75%, righting January's -3.00% bad start. But March has given it all back, just about.

    Seems like it's gonna be that kind of year.

    Here's a snap-shot of roller-coaster...


    Still above 200-day SMA. If that changes for any length of time, so will I.

  • edited March 2015
    AGG not offering very much appeal (see graph below)...

    If the market is "overvalued" and everybody expects interest rate to raise, is there a "safe" place to be...other than cash? (I believe David and Ed have been thinking a lot lately about this question.)

    Even though HCP has been down, I think investors can bank on its 5.6% yield.

    I'd say same with OAK. Although, Scott points out its payout will vary. But since its dividend represents their team's compensation, I'd say it's a good bet to stay attractive.

    And, given the potential upside for BAC and AIG, as they continue to put the great recession behind them, these seem relatively safe places to be as well. I know AIG has been buying back plenty, but a lot of upside remains for both companies as their "shareholder yields" return to historical levels. The recent stress test results help clear the way.

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