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Talking stocks, trading, and investing in general - Page 212

post #3166 of 5025
Quote:
Originally Posted by seeldoger47 View Post

Many markets are looking expensive as investors reach for yield in a zero interest rate world.

If this is true, we're looking at market correction when fed interest rates actually exist again.
post #3167 of 5025
I think the immediate effect would be similar to what happened prior to the fiscal cliff agreement. Tax exempt Bonds were more attractive by comparison and dividend stocks were basically flat for that period since people expected that they were going to pay a higher rate on their dividends. It may end up being slightly less dramatic. I think if they raise rates at a very moderate pace it will have little effect on the economy on the negative.

Just my opinion, it may even continue to help the mortgage market, because all of those that have been waiting for the lowest possible rate will now be threatened with waiting to long and paying more. It will also cause people who are currently in ARM's to refinance into fixed rate loans.
post #3168 of 5025
Quote:
Originally Posted by SkinnyGoomba View Post

I think the immediate effect would be similar to what happened prior to the fiscal cliff agreement. Tax exempt Bonds were more attractive by comparison and dividend stocks were basically flat for that period since people expected that they were going to pay a higher rate on their dividends. It may end up being slightly less dramatic. I think if they raise rates at a very moderate pace it will have little effect on the economy on the negative.

Just my opinion, it may even continue to help the mortgage market, because all of those that have been waiting for the lowest possible rate will now be threatened with waiting to long and paying more. It will also cause people who are currently in ARM's to refinance into fixed rate loans.

 

I think though, the percentage of people going into ARM's are very low. something like 12%?  on top of that I'd estimate 60% of mortgages being closed being MHA. With the economy not fully recovered so purchases will still remain light might see a dead period so to speak as rates aren't low enough for a lot of people to refi, and economy not good enough that people are jumping into purchases

post #3169 of 5025
I heard some rumors that best buy is going out of business this year. Their stock has been on a bit of an upward lift lately. Good time to short?
post #3170 of 5025

thought they went out of business years ago

post #3171 of 5025
Quote:
Originally Posted by zeeshanaayan07 View Post

Great Information Thank You

Nice Job Capitalizing Your Words.
post #3172 of 5025
My portfolio has dwindled over the past few years to a single holding, Wells Fargo. 16.92% return over the last year which is a good bit above the S&P. Should I bother selling this and putting the money in an index fund? Or does WFC perform well enough that it's OK as a long-term hold?

As I invest more in the market, hopefully starting this year, I will be diversifying.
post #3173 of 5025
The second part, of diversifying as you continue to invest is the approach I would take. I have WFC, they just bumped up their dividend to $0.25/qtr and they're performing well so I see no reason to sell my shares.

I've been adding to WFC since 1st quarter 2009, they have never given me a reason to want to sell.
post #3174 of 5025
Quote:
Originally Posted by Connemara View Post

My portfolio has dwindled over the past few years to a single holding, Wells Fargo. 16.92% return over the last year which is a good bit above the S&P. Should I bother selling this and putting the money in an index fund? Or does WFC perform well enough that it's OK as a long-term hold?

As I invest more in the market, hopefully starting this year, I will be diversifying.

A portolio consisting of 1 stock is pretty gross, but if your holding is small and also represents a small portion of your lifetime earning potential, it may not make sense to sell.

I tend to hate life when I pay a $10 broker fee on any trade under $10k.
post #3175 of 5025
Nice earnings out of alot of companies this season, PM posted great results.
post #3176 of 5025
Fucking sea of red today.
post #3177 of 5025
yes, but not unexpected after last month's triumphs. I think there are some cold feet in the market.
post #3178 of 5025
I'm enrolling in a 457(b) through work. Here's what I did:

60%--Vanguard Small Cap Index
15%--Vanguard Mid Cap Index
25%--International Equity Fund Index

Do I have too much in the small cap index? I think it's a good base, small caps outperform mid and large in the long run. And since I'm 24, unmarried, and with a long way to go until retirement, risk aversion is not a primary concern.
post #3179 of 5025
Well, that all depends on your risk appetite. Small and mid caps can perform better (and worse) than large caps because they're inherently riskier. Normally, I'd say 60% in small cap sounds a bit high, but you're young so you can afford the risk appetite and as you mentioned, you aren't very risk-averse.

That being said, in the grand scheme of investment options, even small caps aren't all that risky.

Besides, you are guaranteed to mix up your investment portfolio over your years of working. It's not like you're going to keep that exact portfolio mix forever.

I'd say get even riskier!
post #3180 of 5025
You know, I think I'm going to start out with the TRP Retirement 2055 fund. After some thinking I don't feel confident enough to set up and balance asset allocation on my own.
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