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Adding to equities

Kaspa
edited July 2012 in Fund Discussions
This week I have begun my transition from BOND to HDV in my tax-sheltered momentum portfolio. Depending
on market action I intend to completely switch to HDV in about two weeks. Other leading ETFs in my ranking are IYR, PCY, PGF and TLT. My last switch was towards end of April from equities to BOND. Fundamentally I agreed with that switch, but not with the current one back to HDV. However, I think technical trading systems can only work if you follow them diligently and not pay attention to (your interpretation of) fundamentals. So far so good.

Comments

  • ron
    I would like to add to a taxable account but with little or no tax issues until sold. Perhaps something like an MLP the pays only with ROC. Any ideas?
  • scott
    Reply to @ron: With single MLPs you're going to have to deal with a K-1 (the only single one I continue to have is Brookfield Infrastructure - BIP).

    The closed-end MLP fund that i like is Salient MLP Energy and Infra (SMF), but that's been trading at a significant premium for a few months now and isn't something I'd recommend.
  • catch22catch22
    edited July 2012
    Howdy Kaspa,
    As to the fundamental side of life and with some/many fundamental conditions being perverted by central bank actions and the trading machines (in my opinion); I am trying to connect your HDV with the TLT you note.
    Aside from technical aspects, have you a presumption that our Fed will do more in the QE or similar programs that, in theory, pushes more money to equities and also cause the long bond to continue to move upward in pricing.
    I don't disagree, at this time; with the IYR, PCY or PGF.
    Perhaps I am assuming too much from your etf listingsk; and of course, %'s of which etf's are used also has a bearing on the mix.
    Thank you,
    Catch
  • Kaspa
    My knowledge of Fed's actions and its impact on economy and stock market is minimal. I just follow the market response. If I have to rationalize it, good quality dividend paying companies are a good place to park equity portion of your portfolio with all the uncertainty around. These companies tend to be stable, multinational, value-leaning, dividend providers (see real cash in your portfolio), with less perceived risk.

    In fact, some of my buy-and-hold money is a mix of HDV and BOND.
  • catch22catch22
    You noted: "I just follow the market response. (to the Fed & other)".
    I agree with this view; and is what our house attempts to get a feel for the resulting market moves to whatever is put in place here or other countries to deal with the various situations.
    However, I do feel Fed & other central bank actions do have strong impacts for the past 3 years and at the very least provide clues as to how nervous these banks are regarding existing conditions.
    Thank you.
  • MaxBialystockMaxBialystock
    Adding to equities: YES. I did so in May with MAPOX and MSCFX, about 5% worth of total current portfolio. MSCFX is on fire. MAPOX is struggling. But it's not designed for speed. I figured I was way too overweighted overseas already, and the big-money traders are all freaked out, running into 10-year Treasuries. A-ha. That's my chance to get into equities Stateside, again.
  • Old_Skeet
    edited July 2012
    Hi Kaspa,

    I have been buying equities at a measured pace when the S&P 500 Index is back of 1340. Why 1340? Well, 1340 is the mid point between the year to date high of (1422) and its low of (1258). 1340 provides an entry point at an aprox. P/E Ratio of 12.5 with S&P 500 forward earnings estimates at $107.50. I think it is indeed possible we could see the Index around the 1450 range by year end.

    Another thing I have been doing, within equities, is reducing my allocation to utilities as I figure they are currently overbought; and, I have been adding to my equity positions in the materials and engery sectors along with some commoditties as I think they have become oversold by investors.

    I have linked below a site I reference to track the broad sectors of the S&P 500 Index.
    http://www.sectorspdr.com/sectortracker/

    For the past three months the defensive sectors lead (utilities, consumer staples and health care). However, for the past month the leading sectors are financials, energy and health care.

    Have a good weekend ... and, Good Invesing.

    Skeeter
  • MikeMMikeM
    Reply to @MaxBialystock:

    MAPOX is struggling? That is relative. M* lists it as in the top 2% in it's category YTD. MSCFX is having an unbelievable year as a new fund. It appears at least at this point that you have made a couple good choices.
  • MikeMMikeM
    I've made a couple new (small) purchases by starting to get back into EM's with ODVYX and NR/energy with PRNEX. Both are well off their recent highs.

    I also recently swapped a couple funds.

    I've held a pretty substantial percentage in the well diversified PRPFX for a few years and it's been pretty good to me, but I'm not as comfortable anymore with it's gold and treasury holdings going forward. So I traded much of my PRPFX and bought PGDPX. I really like the dividend income strategy of PGDPX that uses several non-correlated assets for diversification. It's 3 year returns have been terrific and actually has been less volatile (by standard deviation) then PRPFX. It's also been my most stable fund over the last 3 months. Here is some info on the fund if anyone is interesed.
    http://www.principalfunds.com/investor/promo/gdif/

    I traded my small holding in a gold/minors fund, TGLDX and switched to a real estate fund, CSRSX. Realty funds have had a pretty good run the last couple years, but I believe this sector still has plenty of room to go up.

  • Old_Skeet
    edited July 2012
    Hi Mike,

    I too hold Principals Global Diversified Income in the income area of my portfolio. I am very please with its performace. For those interested I have linked the Morningstar report on the fund to complement the link that you provided to the Principal site.

    http://quote.morningstar.com/fund/f.aspx?Country=USA&Symbol=PGBAX

    Good Investing,
    Skeeter
  • Derf
    For what it's worth: Looks to me to be at 52 week high ! Oct. 2011 would have been a good time to buy ! With interest rates at .025 % I can also see why you like it.

    have a cool wked. Derf
  • MaxBialystockMaxBialystock
    Reply to @MikeM:
    Yes, Y-T-D, MAPOX is near the top. I meant that in thelast couple of months (since I got in) it is struggling: 69th percentile in category for the latest one month back... I will be adding to it, shortly, to max-out my $6,000.00 IRA contrib. for 2012.
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