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What about this arse kicking? We don't be hav'in much of anything happy the past few days.....
Dry powder at the ready. Fed and elections are going to reek havoc on the markets and have to be ready to scoop up some nice high quality companies at discounts.
Dry powder at the ready. Fed and elections are going to reek havoc on the markets and have to be ready to scoop up some nice high quality companies at discounts.
There was a time when people their economic dots with the election of the president. I don't think people do that any more. For example, I don't think the mass of people connect an increase in a government program's cost with the deficit and the possible negative impact on interest rates and taxes.
As to the cause of today's decline - fear of an interest rate hike or the decline in the price of oil?
@Catch, I think it is time to buckle-up ... for some that might be invested above their risk level. So are you running for cover? Expecting a margin call? If so, then you might have concern.
Since, I have already built my cash position ... I am not doing anything until the S&P 500 Index drops about 5% off it's recent high which will put it somewhere around the 2075 range. If this pullback reaches this level I'll start to get serious about looking at where I might put some money to work. I have a buy list in hand; but, it is subject to change. For now, I am looking at value, low p/e mutual funds, maybe adding to my small/mid cap positions, perhaps some to my global positions and last but not least, funds that are well off their 52 week highs.
For me the question is ... How much must the market drop or how many down days must we have before a selling stampede gets declared? I plan to read Jeff Saut's (Raymond James) commentary on Monday. I'll also be looking at the Moose's call plus looking at the Invest With an Edge's site to check the Leadership Strategy to see if cash has advanced in the pecking order ... and, if so, by how much?
For me ... Well, there is just not much to do but sit back and watch since I am already holding a good amount of cash. Should the market pullback to where I feel an attractive entry point has been reached then I'll start a buying process and put some money to work as I am at the low range, within my asset allocaton, for stocks.
So, no. I don't feel my arse has been kicked, at all. In fact, I feel a pullback was warranted. After all, stocks are currently richly priced and overbought from my perspective.
I sold half of my junk bond holdings today. I also sold my emerging market bond funds. It has been a nice run - 2 months without any volatility, until today.
Having a list of items you want to pursue is obviously called for, along with the requisite cash. Given the lack of meaningful correction for quite some time, I would be cautious at the 5% mark. We really need something much more significant.
I'm wondering if this pull back is a signal from wall street to the FED not raise interest rates. This seems to be the game they play. It's like a little kid throwing a temper tantrum. "You better not raise rates or we'll make the stock market drop".
@Old_Skeet, this might be a good time to start up the 'what are you bying/selling/pondering' post. I put a toe hold into a financial ETF, RYF, and have a limit order in to buy more with a significant drop.
When the Fed raised 25 base point earlier in the year, the market reacted poorly and they held off until now. Foreign markets fell another % more than the broader US market. If the labor market and other indicators are improving (no matter how small they are), small increases may not be so bad. I would be more concern when the Fed starting selling all those billions $ bonds they bought in QEs.
Having said that, I am patiently waiting just like Warren Buffet.
Comments
I'm holding pat on everything I own. However, another few days like this and I'd even be inclined to start buying again in small doses. Maybe......
As to the cause of today's decline - fear of an interest rate hike or the decline in the price of oil?
Since, I have already built my cash position ... I am not doing anything until the S&P 500 Index drops about 5% off it's recent high which will put it somewhere around the 2075 range. If this pullback reaches this level I'll start to get serious about looking at where I might put some money to work. I have a buy list in hand; but, it is subject to change. For now, I am looking at value, low p/e mutual funds, maybe adding to my small/mid cap positions, perhaps some to my global positions and last but not least, funds that are well off their 52 week highs.
For me the question is ... How much must the market drop or how many down days must we have before a selling stampede gets declared? I plan to read Jeff Saut's (Raymond James) commentary on Monday. I'll also be looking at the Moose's call plus looking at the Invest With an Edge's site to check the Leadership Strategy to see if cash has advanced in the pecking order ... and, if so, by how much?
For me ... Well, there is just not much to do but sit back and watch since I am already holding a good amount of cash. Should the market pullback to where I feel an attractive entry point has been reached then I'll start a buying process and put some money to work as I am at the low range, within my asset allocaton, for stocks.
So, no. I don't feel my arse has been kicked, at all. In fact, I feel a pullback was warranted. After all, stocks are currently richly priced and overbought from my perspective.
Don't forget to take some bleach ...
Having a list of items you want to pursue is obviously called for, along with the requisite cash. Given the lack of meaningful correction for quite some time, I would be cautious at the 5% mark. We really need something much more significant.
@Old_Skeet, this might be a good time to start up the 'what are you bying/selling/pondering' post. I put a toe hold into a financial ETF, RYF, and have a limit order in to buy more with a significant drop.
Having said that, I am patiently waiting just like Warren Buffet.