I’ve never seen a year like this …..
- HSGFX, a perennial looser, is up over 6%.
- DODIX, a solid short-intermediate term bond fund is down over 5%.
- Commodities & energy sizzle. But home builders are in the toilet.
- Gold’s in a stealth rally with metal & miners up about 20% over year ago. But nobody’s talking about it.
- Cash is still trash. But less so.
- DODBX led the pack early as value raced ahead, but is now flat YTD.
- The Fed takes center stage - but mostly with a lot of roar and little action. This week, the minutes of their last meeting are released. Likely to move markets.
- Than there’s inflation in the 5-8% year-over-year range. But few observers I follow expect it to remain that high. Lord help us if it does.
I’m at a loss for ideas. A good time to do nothing I guess.
Friday I bought a bit of TELL and some Sprott physical uranium.
My wife and my retirement accounts are up about 2.4% as we are overwieght energy and commodities, but still only 30% in equity positions. Recent Value focus helps too
Non-retirement accounts are up about 1.5%, a little more equities because I am cautious selling winners as the capital gains push our IRRMA up for Medicare, and are taxed at 12% in Massachusetts
I think the risk to the downside is far higher than risk of missing new bull market.
Warren Buffet did me a favor agreeing to buy Y less than a month after I did (+25%). Modest exposure to gold & industrial metals has been a plus. But I’ve damaged my return by clinging to TAIL. It’s designed to protect against sharp equity selloffs. Had I realized the extent to which it reacts to VIX readings (the “fear gage”) I could have probably done a better job trading it. Added a bit this morning. Just over 6% of portfolio.
The only area I play around with is the 10% devoted to hedging equity risk. The two other funds in that group (DRSK & GLDB) have held up much better. I’m quite bearish on equity markets in general. That’s for another thread.
@yogibearbull Yeppers, you are absolutely correct. Not only can there be issues with different rules for different countries, but bullion ETF are taxable as collectibles at 28%. This means you always keep these in either a deferred or tax exempt account.
I've owned CEF for years with no problems.
I also plan on making some purchases in my IRA in the near future. Particularly funds that have been punished severely. I still have dry powder from selling most of my bond funds back in February 2020.
I typically rebalance, and rearrange the deck chairs, in the early part of the year. But this year I have been working on a large reconfiguration of our vegetable garden.
Ah, just a passing thing, yes? All will be well by the time I awake !
Blood starting to trickle in the streets ...
You're having too much fun at Fidelity, yes?
Well, that's okay. You're deserving of such pleasure.
PS - Can you go to jail for that?
On the serious side, added a smidgin to FLJP today which has been a good fund in the past but down more than 10% YTD. Not being currency hedged is killing it. Longer term it’s hard to get excited about cash. I’ve seen the Fed reverse course too many times to put much faith in what they say. It will be interesting to see what the Open Mouth Committee has to say after the “minutes” have been digested by markets.
I'm cash-poor again, just waiting and watching. When my change of address is finally accomplished, I'll know how much I have to play with in the Market. Looking ahead, I'm thinking I may wait for the ostensibly big dividend in ENIC (June) and then switch-over completely into EBR, Brasilian electric utility, with apparently much better prospects... AND a good dividend, too. Otherwise, let BHB keep falling and I'll be tempted to purchase more of it.
*GAWD, I'll be glad to be away from THE busiest street in Honolulu. I can't even hear myself THINK. Today, the wind is blowing like a hammer and the temp. is 82. (11:40 a.m.)