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For now, yields on long bonds are rising quickly. 20 years treasury is being auction today with 5.0 % yield, an all time high. If the sale does not go well, it will be messy tomorrow. Bond traders are not so happy with the increased deficit from this tax cut bill. If bond market goes, so does the stock market. So we are watching closely.
Edits: From CNBC at market close:
The bill could increase the U.S. government's debt by trillions and raise the deficit at a time when fears of a flare-up in inflation due to Trump tariffs are already weighing on bond prices and boosting yields. The 30-year Treasury bond yield jumped again Wednesday to hit 5.09%, touching the highest level going back to October 2023. The benchmark 10-year Treasury note yield traded at 4.59%.
I completely realize that this is very selfish, but I guess that I have the present administration to thank for the fact that interest on our SUTXX MMKT over at Schwab is headed up again.
Raised portfolio cash from 10% to 15% with withdrawals from more aggressive holdings across the board. That somewhat understates actual short-term fixed income exposure because some of my ”investments” hold or attempt to replicate fixed income as well.
Another Marvell line: “But at my back I always hear Time’s winged chariot … “
Took a bunch of cash and bought more of FBP. A good opportunity to reduce cost basis on a planned long-term Hold. End of month dividends on some of my stuff, tonight.
@Crash, you seem to have a thing for banks. Any particular reason?
You're right. I left BHB too late, but still got away with 14% profit. I will consider banks or other stocks with at least a 3% dividend. That's an arbitrary rule of mine. Many banks offer divvies, and so I regularly go looking in that direction. I'm still set up for some growth, but income is now a bigger piece of the picture. I may have got really lucky with BLX. I'm not deliberately looking for LatAm outfits. I did my homework and came up with BLX and FBP. I have given up on airline CPA. "The one that got away." I have decided not to pay the current (rising) price for that puppy. If it falls to earth again, I'll wanna know why, but if my homework shows me fundamentals are good, I'd dip a toe in that water.
I'd love to find a way to hop onto the new Canadian defense-military emphasis. Very few such companies up there, and no dividends.
Another bank, with an outsized dividend, in rural, northern Vermont: CMTV. Very thinly traded. Ridiculously low beta. OTC market. Been in business a long time, stable. Keeping an eye on THAT one, too.
@derf I consider the percentages by account instead of the portfolio as a whole as the taxable and IRA accounts are uniquely constructed. The percentage of a "full position" is an admittedly arbitrary 4%, and is an artifact from my earliest investing days. Some positions grow well beyond that target, such as AVGO and FNMA are both hovering around 15% in my IRA, with FNMA at a similar percentage in my taxable account. 20 positions in each of my accounts is comfortable...for the time being.
@PRESSmUP Thanks for providing that info. I enjoy the different ways of getting to see how people construct their portfolio. One more question if I may. With about 40 positions , do you have some positions in both accounts.& approximately how often do you add or subtract a positions?
@Derf ...common holdings ranked by dollar volume between accounts include: FNMA, CLDX, T, JPST, SCHD, EVT, UTF, and PTA. As you can see, some are highly speculative, and many throw off significant distributions.
I don't add or subtract very often. That will change (hopefully) if AVGO gets a bump at earnings this week. It may rise higher over the next 2 years or so, but I'll be cashing in to fund a half dozen different long term positions when the market inevitably tanks in the near future.
By the way...I've found that buying high quality individual stocks when on sale is one of the best ways to generate income and capital gains within an account. But you must be very patient. Same with CEFs.
It's not magic, but it works for me. FYI, Schwab has me +14.91% YTD,
Used dividend money paid out yesterday to buy a few more in BLX. It's 7.56% of portfolio now. US is too rich, plus the political chaos. Buying elsewhere opens up business-to-business avenues free from the Orange Chaos.
In the IRA: Bought BBBMX and CBLDX to make up 6% each of the portfolio. BUBIX and PRWCX add another 12%. I have about 6% between BIAVX and DGRW, which are both underwater since I bought them in November.
TACO is a fun meme, but I'm not yet willing to commit more money to equities than I already have. I am keeping my eye on WSHFX and MVGIX in particular. I might look at some sector funds in the meantime. Been a while since I checked up on those.
Nothing shaking in the taxable but the leaves on the tree.
In the last 2-weeks I’ve reallocated the following:
In IRA(s): sold small amounts of VIG/VDADX and VTSAX; added to CGDV and transferred the rest into NEAR, DHEIX, and Mmkt. Have been saving cash for potential individual treasury notes or a market drop.
In 403-b: moved money into TIERX, VBTLX, and QCILIX.
Comments
For starters I'm looking at E.ON and Engie in Europe.
Edits: From CNBC at market close:
For sure.
Another Marvell line: “But at my back I always hear Time’s winged chariot … “
I left BHB too late, but still got away with 14% profit.
I will consider banks or other stocks with at least a 3% dividend. That's an arbitrary rule of mine. Many banks offer divvies, and so I regularly go looking in that direction. I'm still set up for some growth, but income is now a bigger piece of the picture. I may have got really lucky with BLX.
I'm not deliberately looking for LatAm outfits. I did my homework and came up with BLX and FBP. I have given up on airline CPA. "The one that got away." I have decided not to pay the current (rising) price for that puppy. If it falls to earth again, I'll wanna know why, but if my homework shows me fundamentals are good, I'd dip a toe in that water.
I'd love to find a way to hop onto the new Canadian defense-military emphasis. Very few such companies up there, and no dividends.
Another bank, with an outsized dividend, in rural, northern Vermont: CMTV. Very thinly traded. Ridiculously low beta. OTC market. Been in business a long time, stable. Keeping an eye on THAT one, too.
Thanks for your time, Derf
I don't add or subtract very often. That will change (hopefully) if AVGO gets a bump at earnings this week. It may rise higher over the next 2 years or so, but I'll be cashing in to fund a half dozen different long term positions when the market inevitably tanks in the near future.
By the way...I've found that buying high quality individual stocks when on sale is one of the best ways to generate income and capital gains within an account. But you must be very patient. Same with CEFs.
It's not magic, but it works for me. FYI, Schwab has me +14.91% YTD,
TACO is a fun meme, but I'm not yet willing to commit more money to equities than I already have. I am keeping my eye on WSHFX and MVGIX in particular. I might look at some sector funds in the meantime. Been a while since I checked up on those.
Nothing shaking in the taxable but the leaves on the tree.
In IRA(s): sold small amounts of VIG/VDADX and VTSAX; added to CGDV and transferred the rest into NEAR, DHEIX, and Mmkt. Have been saving cash for potential individual treasury notes or a market drop.
In 403-b: moved money into TIERX, VBTLX, and QCILIX.