Dividend Growth Investors - Prepare For The Correction [View article]
Hi Cranky,
Good topic and yes, in my humble opinion, one should spread the love and not have to many eggs in one basket.
I do agree, those that have a nice solid pension, SS, other types of income streams, nice emergency cash position, little or no debt, may have a higher allocation to risks.
For others, with less financial resources, they really, really need to think hard about how they are willing to risk in the market.
Every once in a while folks start thinking they are way too smart to take a whooping in this market, until the market shows them who is really in charge.
Rising market makes a lot of folks look like shooting stars until they become falling stars during a down market.
For me, as the market hits all time highs and continues to melt up, I allow my capital preservation to melt up, because sooner or later, I know that past history is going to repeat.
Good folks can disagree, have different comfort levels, risk tolerances and that's okay. Just be careful and be prepared for what ever the market will throw your way.
The Dividend Income Magical Mystery Tour [View article]
RS,
Enjoyed the article.
I always wish I knew what I know now 20 years ago, but not sure if I would have listened :)
Best wishes my friend and hope all is going great for you. I arrived today in Memphis TN for a week, but hope to be fishing in good old p'cola by the weekend! gratian
A Flight To Safety Or Crash And Burn? [View article]
whisper,
I always say that I have a little of everything and a whole lot of nothing :)
I believe in a well diversified portfolio with attention to position size and asset allocations, but will move to what I consider is my safe portfolio or more of a capital preservation, if required.
Others may not agree with my strategy, perhaps believe it is not the wisest strategy, but we can learn much from our debates and willingness to share information among friends.
We have many, many different types of investors within the SA community, it's a big house, and I believe you can add a lot to the bond space, with your knowledge in bonds.
It is unfortunate that you and AAM have been in a such tussle, I value both of your comments and investment knowledge, and it is my sincere hope that all can be friends despite differences of opinions.
I think both of you will agree that there is many, many ways of making money in the market and what works today may not work as well as tomorrow.
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
golfer,
A huge investment strategy difference for those that are perhaps 25 year old verses someone that is 65 in retirement, at least one would think.
I'm with you, I was very successful and blessed over the last couple of years and for me, with the market at these levels, time for a little capital preservation is in order.
Who knows, the market could keep on rising for another couple of years, but I do know the further we travel from the last meltdown the closer to the next meltdown.
Everyone will have different comfort levels, risks tolerances and investment strategies, nothing wrong with that, because there is numerous ways to make money in the market.
I wish, I could be a chowder, perhaps one of the Davids, Rich, Robert, extreme or many other successful investors we have at this site, but I have to do what comes naturally for me, just as you need to do what comes naturally for you.
We can learn so much from all these talented investors, but sooner or later each SDI has to find there own way, there own style.
I go where I can find the best value for my dollar where ever it leads me, no matter the asset class, within the market or outside the market, it does not matter.
Cash management is so important as any other part of the overall portfolio strategy, but the least discussed at times. Many of your greatest investors knew how to manage cash to take advantage of any opportunities the market will offer from time to time.
Looks like you have done very well over the years and I wish you have a many outstanding retirement years, best wishes, gratian
Why A Stock Market Bubble Is Forming Right Now [View article]
Captain,
I also agree that we are seeing the big boy's playing and moving the market. It will be interesting to see how it turns out over the next couple of months.
I saw a report that about 2% (hope the article is correct) control 40% of the stock market, the 2% will decide what will happen, not the retail investor.
Why A Stock Market Bubble Is Forming Right Now [View article]
Scooter,
Aprox 30% cash or cash equivalents, roughly 50% in individual investment grade bonds, over the last couple of months reduce my equity stake significantly and significantly built up my cash.
Last couple of years has been a great wealth generator, but now I'm more interested in protecting my wealth.
I'm taking a little siesta until I see if the fed exits the market safely.
I'm keeping a couple of equity positions in each brokerage account as possible short term gains or spec positions.
No telling how long the market will keep rising with the fed pouring kerosene on it each month, but everyone will need to assess the risks and plan accordling.
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
rich,
It has almost been a struggle to put the brakes on the portfolio a little bit :)
Yes, It would be very, very frustrating for me to be 100% invested during a major correction.
I have no complaints, the last couple of yours has delivered outstanding returns and in my opinion, time to put some of that money in the bank for a rainy day.
Nothing wrong with chowder way of investing, picking sound blue chip dividend growth companies, dollar cost average "DCA", drip the dividends, ignore the valuations and market conditions. Over the long run, this strategy will work nicely for a SDI utilizing this approach.
I would assume that chowder statement of being 100% invested excludes his emergency cash position. I like to hold two years of cash or cash equivalent (= 2 years estimated expenses), but it all depends on each individuals comfort level and risk tolerances.
Everyone should have some cash set aside for any type of emergency. If not, you run the danger of tapping into securities which might be upside down in a major correction.
However, if you just coming into the market, then I would advise to be in the very, very slow, slow mode of putting your dollars to work or risk being very upside down when the rotation out of the defensive holdings starts.
I really like to see how the fed exits before I get really excited about putting all my money "100%" at risk again, but to each his own.
Best wishes and hope all is going great for you, gratian
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
Pen,
You absolutely do not have a clue as to how much money I made over the last couple of months, nor the amount that I do have at risk in the market even with 30% currently in cash.
Additionally, the only person that I have to make happy is my significant other and so far, she is very happy.
It is my nature to start the process of pulling risk off the table when others are very happy to increase there risk when the market starts hitting all time highs.
It has worked well for me over the decades though a couple of meltdowns, but I understand that good folks can disagree on my strategy.
Anyway, just keep on doing what works for you and I'll just keep plugging along trying to make a dollar or two.
Different strokes for different folks, nothing wrong with that.
Why A Stock Market Bubble Is Forming Right Now [View article]
Tony,
In all fairness, Mr. Buffet has been a master of managing or hoarding a cash position over many decades allowing him to take advantage of opportunities the market provides from time to time.
So in short, he does not put the pedal to the metal during good times or perhaps all time highs, but does know how to put money to work when folks are running to the fox holes.
When you look at the tiger club allocations or those of high net worth, they all are fairly good knowing how to manage a cash position and market risk.
Sorry, I just don't believe that Mr. Buffet investment and business record reflects that he ignores the market even though he likes to make that comment on a fairly regular basis.
Dividend Growth Investors - Prepare For The Correction [View article]
Good topic and yes, in my humble opinion, one should spread the love and not have to many eggs in one basket.
I do agree, those that have a nice solid pension, SS, other types of income streams, nice emergency cash position, little or no debt, may have a higher allocation to risks.
For others, with less financial resources, they really, really need to think hard about how they are willing to risk in the market.
Every once in a while folks start thinking they are way too smart to take a whooping in this market, until the market shows them who is really in charge.
Rising market makes a lot of folks look like shooting stars until they become falling stars during a down market.
For me, as the market hits all time highs and continues to melt up, I allow my capital preservation to melt up, because sooner or later, I know that past history is going to repeat.
Good folks can disagree, have different comfort levels, risk tolerances and that's okay. Just be careful and be prepared for what ever the market will throw your way.
Best wishes, gratian
The Dividend Income Magical Mystery Tour [View article]
Enjoyed the article.
I always wish I knew what I know now 20 years ago, but not sure if I would have listened :)
Best wishes my friend and hope all is going great for you. I arrived today in Memphis TN for a week, but hope to be fishing in good old p'cola by the weekend! gratian
Atmos Energy: A Quality Company That's Overvalued [View article]
I agree, held ATO for a good long time, but figured I road that train far to long and took the capital gains on this holding.
Maybe one day I'll swing back into the company, maybe not, only the future knows.
Best wishes, gratian
Why A Stock Market Bubble Is Forming Right Now [View article]
I would think that the vast majority of investors have managed accounts and very few are true SDI "self directed investors".
As such, I believe the author is correct in one sense that most investors are clearly not in individual stocks, but instead funds.
Best wishes, gratian
A Flight To Safety Or Crash And Burn? [View article]
I always say that I have a little of everything and a whole lot of nothing :)
I believe in a well diversified portfolio with attention to position size and asset allocations, but will move to what I consider is my safe portfolio or more of a capital preservation, if required.
Others may not agree with my strategy, perhaps believe it is not the wisest strategy, but we can learn much from our debates and willingness to share information among friends.
We have many, many different types of investors within the SA community, it's a big house, and I believe you can add a lot to the bond space, with your knowledge in bonds.
It is unfortunate that you and AAM have been in a such tussle, I value both of your comments and investment knowledge, and it is my sincere hope that all can be friends despite differences of opinions.
I think both of you will agree that there is many, many ways of making money in the market and what works today may not work as well as tomorrow.
I truly wish you and AAM the very best. gratian
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
A huge investment strategy difference for those that are perhaps 25 year old verses someone that is 65 in retirement, at least one would think.
I'm with you, I was very successful and blessed over the last couple of years and for me, with the market at these levels, time for a little capital preservation is in order.
Who knows, the market could keep on rising for another couple of years, but I do know the further we travel from the last meltdown the closer to the next meltdown.
Everyone will have different comfort levels, risks tolerances and investment strategies, nothing wrong with that, because there is numerous ways to make money in the market.
I wish, I could be a chowder, perhaps one of the Davids, Rich, Robert, extreme or many other successful investors we have at this site, but I have to do what comes naturally for me, just as you need to do what comes naturally for you.
We can learn so much from all these talented investors, but sooner or later each SDI has to find there own way, there own style.
I go where I can find the best value for my dollar where ever it leads me, no matter the asset class, within the market or outside the market, it does not matter.
Cash management is so important as any other part of the overall portfolio strategy, but the least discussed at times. Many of your greatest investors knew how to manage cash to take advantage of any opportunities the market will offer from time to time.
Looks like you have done very well over the years and I wish you have a many outstanding retirement years, best wishes, gratian
Why A Stock Market Bubble Is Forming Right Now [View article]
I also agree that we are seeing the big boy's playing and moving the market. It will be interesting to see how it turns out over the next couple of months.
I saw a report that about 2% (hope the article is correct) control 40% of the stock market, the 2% will decide what will happen, not the retail investor.
Best wishes, gratian
Why A Stock Market Bubble Is Forming Right Now [View article]
Aprox 30% cash or cash equivalents, roughly 50% in individual investment grade bonds, over the last couple of months reduce my equity stake significantly and significantly built up my cash.
Last couple of years has been a great wealth generator, but now I'm more interested in protecting my wealth.
I'm taking a little siesta until I see if the fed exits the market safely.
I'm keeping a couple of equity positions in each brokerage account as possible short term gains or spec positions.
No telling how long the market will keep rising with the fed pouring kerosene on it each month, but everyone will need to assess the risks and plan accordling.
Hope you are doing well, best wishes, gratian
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
It has almost been a struggle to put the brakes on the portfolio a little bit :)
Yes, It would be very, very frustrating for me to be 100% invested during a major correction.
I have no complaints, the last couple of yours has delivered outstanding returns and in my opinion, time to put some of that money in the bank for a rainy day.
Nothing wrong with chowder way of investing, picking sound blue chip dividend growth companies, dollar cost average "DCA", drip the dividends, ignore the valuations and market conditions. Over the long run, this strategy will work nicely for a SDI utilizing this approach.
I would assume that chowder statement of being 100% invested excludes his emergency cash position. I like to hold two years of cash or cash equivalent (= 2 years estimated expenses), but it all depends on each individuals comfort level and risk tolerances.
Everyone should have some cash set aside for any type of emergency. If not, you run the danger of tapping into securities which might be upside down in a major correction.
However, if you just coming into the market, then I would advise to be in the very, very slow, slow mode of putting your dollars to work or risk being very upside down when the rotation out of the defensive holdings starts.
I really like to see how the fed exits before I get really excited about putting all my money "100%" at risk again, but to each his own.
Best wishes and hope all is going great for you, gratian
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
Agree, lot's of ways to make money in this market and you also have lot's of ways to lose money :)
I'm not arrogant enough to believe my way is the only way to profit or invest in this market.
My guess is that when you are concerned about capital preservation, I will be more concerned about buying great companies at great discounts. HA!
The market has a way of making folks complacent, we have seen this type of emotion many times, this time is no different.
I am perhaps a little leery of the feds heavy hand in this market and will be that way until they figure out a way to exit the market safely.
Best wishes, Gratian
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
You absolutely do not have a clue as to how much money I made over the last couple of months, nor the amount that I do have at risk in the market even with 30% currently in cash.
Additionally, the only person that I have to make happy is my significant other and so far, she is very happy.
It is my nature to start the process of pulling risk off the table when others are very happy to increase there risk when the market starts hitting all time highs.
It has worked well for me over the decades though a couple of meltdowns, but I understand that good folks can disagree on my strategy.
Anyway, just keep on doing what works for you and I'll just keep plugging along trying to make a dollar or two.
Different strokes for different folks, nothing wrong with that.
Best wishes, gratian
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
curious.............. what is your current cash allocation? I'm sitting on about 30% allowing it to accumulate each month for now.
Hope all is going great for you. Best wishes, gratian
Why A Stock Market Bubble Is Forming Right Now [View article]
In all fairness, Mr. Buffet has been a master of managing or hoarding a cash position over many decades allowing him to take advantage of opportunities the market provides from time to time.
So in short, he does not put the pedal to the metal during good times or perhaps all time highs, but does know how to put money to work when folks are running to the fox holes.
When you look at the tiger club allocations or those of high net worth, they all are fairly good knowing how to manage a cash position and market risk.
Sorry, I just don't believe that Mr. Buffet investment and business record reflects that he ignores the market even though he likes to make that comment on a fairly regular basis.
Best wishes, gratian
Why A Stock Market Bubble Is Forming Right Now [View article]
How Can One Trade Be Both Good For Me And Bad For Me? [View article]
All that matters is that you got a great return for the money you invested and put at risk. Any day you can make some money is a good day!
Just move along and trust that you are going to make the right decision more times than wrong decision :)
So far, I think your doing just fine.
Have a great week end my friend, gratian