Investors....come in please!
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Originally Posted By: Hokiefyd
It's all risk management.
I'm young enough where I don't have to make risky moves to amass a lot of money by retirement. My dad is 60 and has over 1.2 million dollars in his IRA. His strategy has always been index investing. With that much kitty, he can take out $60,000/year and as long as his portfolio is making a nominal 5%, it's pretty much self-sustaining. One can live REAL comfortable in retirement on $60,000 per annum. Even if you convert it all to cash at that point, which is certainly a reasonable idea, you've got 20 years' worth of $60k salaries.
I have no doubt that you can time the market if you put enough research time into it. That's why I said that for long-term investing, without also putting a lot of time into it, buying and holding is generally a very good approach. It's not for everyone. But it does work.
Yep, thats the way to retire with over a million dollars is to be in it for the long haul. Sure it would be nice to have a crystal ball and see future events in the stock market, but if you are constantly investing money long term you are better off than putting the money in your mattress and sleeping on it. Or worse blowing it on silly stuff you don't need. My dad is in the same boat as your dad but 20 years older and an extra $500K balance. I know this for a fact.
It's all risk management.
I'm young enough where I don't have to make risky moves to amass a lot of money by retirement. My dad is 60 and has over 1.2 million dollars in his IRA. His strategy has always been index investing. With that much kitty, he can take out $60,000/year and as long as his portfolio is making a nominal 5%, it's pretty much self-sustaining. One can live REAL comfortable in retirement on $60,000 per annum. Even if you convert it all to cash at that point, which is certainly a reasonable idea, you've got 20 years' worth of $60k salaries.
I have no doubt that you can time the market if you put enough research time into it. That's why I said that for long-term investing, without also putting a lot of time into it, buying and holding is generally a very good approach. It's not for everyone. But it does work.
Yep, thats the way to retire with over a million dollars is to be in it for the long haul. Sure it would be nice to have a crystal ball and see future events in the stock market, but if you are constantly investing money long term you are better off than putting the money in your mattress and sleeping on it. Or worse blowing it on silly stuff you don't need. My dad is in the same boat as your dad but 20 years older and an extra $500K balance. I know this for a fact.
Originally Posted By: Warstud
Need to close above 1390 friday or else the SPX has much further to go on the downside.
We are in a confirmed rally.
The volume is the main point of suspicion. Natural low August volume.
My positions fared well this bumpy week. In the last few weeks also took new positions in:
EXC
GNI
PFXC
HSA
CMK
HCF
JGT
Need to close above 1390 friday or else the SPX has much further to go on the downside.
We are in a confirmed rally.
The volume is the main point of suspicion. Natural low August volume.
My positions fared well this bumpy week. In the last few weeks also took new positions in:
EXC
GNI
PFXC
HSA
CMK
HCF
JGT
Originally Posted By: tpitcher
Originally Posted By: Warstud
Need to close above 1390 friday or else the SPX has much further to go on the downside.
Will be interesting...
I won't be surprised if it drops into the 1360s and bounces again. It will still be in the confines of an uptrend as long as we stay above 1354.
Originally Posted By: Warstud
Need to close above 1390 friday or else the SPX has much further to go on the downside.
I won't be surprised if it drops into the 1360s and bounces again. It will still be in the confines of an uptrend as long as we stay above 1354.
Originally Posted By: Hokiefyd
Drew99GT said:AGNC has been an excellent dividend-paying stock. It was close to 20% when I bought it back in December, but it's down to about 14% right now. I don't know how long the environment will be fruitful for mREITs, but even if they eventually have to cut the dividend again, it's still a very healthy kick-off for those looking for a buy-it-and-hold-it equity.
What scares me about AGNC is their dividend is about 140% of earnings. Are they sitting on enough cash to continue that?
Well that, and the share price is near the 52 week high.
I guess I am just a chicken. If they drop the dividend to match earnings, yield would still be around 10%.
Tim
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Originally Posted By: Tim
What scares me about AGNC is their dividend is about 140% of earnings. Are they sitting on enough cash to continue that?
The current dividend level doesn't seem to be sustainable for the long term. I'd expect it to eventually fall down to where many other high-yield dividend-paying stocks lie, in the 6-10% range. How soon will that happen? I don't know. I was fortunate to get into AGNC in December before its late run-up, but I haven't added to my position, and probably will not.
What scares me about AGNC is their dividend is about 140% of earnings. Are they sitting on enough cash to continue that?
The current dividend level doesn't seem to be sustainable for the long term. I'd expect it to eventually fall down to where many other high-yield dividend-paying stocks lie, in the 6-10% range. How soon will that happen? I don't know. I was fortunate to get into AGNC in December before its late run-up, but I haven't added to my position, and probably will not.
I've been doing analysis all morning and my go to ratio indicator of spy to tlt is rolling over after meeting resistance on a weekly basis. xlu is doing the same thing. 10 year yields made a decent surge over the past month and have rolled over and are dropping. A more substantial correction in equities could be coming as capital is flowing to safety. This may be in anticipation of the Fed not formerly announcing QE3 this week. In the past, treasuries dropped and yields went up in anticipation of QEs as it was a sign of risk on.
Originally Posted By: Warstud
QE3 started this month in the form of REPOS.
Repos have been and always will be a part of Fed open market operations to maintain desired fed Funds rates. They are temporary (hence the term "repurchasing agreements). They aren't permanent and long term balance sheet expansions like quantitative easing.
http://online.wsj.com/article/BT-CO-20120802-714959.html
"Operations by the Fed involving what are known as repurchase agreements, or repos, act to temporarily add bank reserves to the system by essentially borrowing bonds for a fixed period of time. Once a cornerstone of the day-to-day efforts to achieve the monetary-policy objectives set by the Federal Open Market Committee, the tool has fallen by the wayside as the central bank has moved to pursue massive purchases of bonds. The New York Fed noted that the last time it put in place a repo operation was on Dec. 30, 2008."
http://www.newyorkfed.org/aboutthefed/fedpoint/fed04.html
"The Fed uses repurchase agreements, also called "RPs" or "repos", to make collateralized loans to primary dealers. In a reverse repo or “RRP”, the Fed borrows money from primary dealers. The typical term of these operations is overnight, but the Fed can conduct these operations with terms out to 65 business days."
QE3 started this month in the form of REPOS.
Repos have been and always will be a part of Fed open market operations to maintain desired fed Funds rates. They are temporary (hence the term "repurchasing agreements). They aren't permanent and long term balance sheet expansions like quantitative easing.
http://online.wsj.com/article/BT-CO-20120802-714959.html
"Operations by the Fed involving what are known as repurchase agreements, or repos, act to temporarily add bank reserves to the system by essentially borrowing bonds for a fixed period of time. Once a cornerstone of the day-to-day efforts to achieve the monetary-policy objectives set by the Federal Open Market Committee, the tool has fallen by the wayside as the central bank has moved to pursue massive purchases of bonds. The New York Fed noted that the last time it put in place a repo operation was on Dec. 30, 2008."
http://www.newyorkfed.org/aboutthefed/fedpoint/fed04.html
"The Fed uses repurchase agreements, also called "RPs" or "repos", to make collateralized loans to primary dealers. In a reverse repo or “RRP”, the Fed borrows money from primary dealers. The typical term of these operations is overnight, but the Fed can conduct these operations with terms out to 65 business days."
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How long can that last? They're paying out twice their earnings. I bought BPT today.
JHZR2
Staff member
Originally Posted By: tpitcher
Buying ARR today.
16.1% yield. Pays monthly.
So did you?
I have a nice profit on a ton of shares CIM I got at $2.15. Was considering taking that profit and throwing into something else. Though of course this is essentially the same...
Buying ARR today.
16.1% yield. Pays monthly.
So did you?
I have a nice profit on a ton of shares CIM I got at $2.15. Was considering taking that profit and throwing into something else. Though of course this is essentially the same...
Long term treasuries have bounced, the dollar is bouncing at support, and the SP looks like it's topping on a weekly basis. Bernanke will likely give a bla bla bla speech since it's an election year. A decent sell off would probably be good before the next leg higher.
Originally Posted By: JHZR2
Originally Posted By: tpitcher
Buying ARR today.
16.1% yield. Pays monthly.
So did you?
I have a nice profit on a ton of shares CIM I got at $2.15. Was considering taking that profit and throwing into something else. Though of course this is essentially the same...
Yes, I did buy it !
It's weird, I'm waiting for the correction as I have way too much in cash just waiting.......
Originally Posted By: tpitcher
Buying ARR today.
16.1% yield. Pays monthly.
So did you?
I have a nice profit on a ton of shares CIM I got at $2.15. Was considering taking that profit and throwing into something else. Though of course this is essentially the same...
Yes, I did buy it !
It's weird, I'm waiting for the correction as I have way too much in cash just waiting.......
I know what you mean and the main reason I dabble. I sold off that GNI when it spiked the other day. Took some quick day profit, hey a $1000 here, $1000 there vs. waiting on .05% is worth the gamble if you have the means.
WRC may get interesting. Market down yesterday a bit, but my portfolio hardly flexed.
WRC may get interesting. Market down yesterday a bit, but my portfolio hardly flexed.
Did anyone else buy NOK near its all-time low a month ago? I bought in at $1.78 and it's near $3.00 now. I almost sold last week at $3.15 (a 77% profit!), but I'm trying to hold out for their new W8 Lumia phone debut in September.
Originally Posted By: Hokiefyd
Did anyone else buy NOK near its all-time low a month ago? I bought in at $1.78 and it's near $3.00 now. I almost sold last week at $3.15 (a 77% profit!), but I'm trying to hold out for their new W8 Lumia phone debut in September.
Naw, I didn't.
I was going to but more INTC this morning, but way too busy at work and not by my computer.
Did anyone else buy NOK near its all-time low a month ago? I bought in at $1.78 and it's near $3.00 now. I almost sold last week at $3.15 (a 77% profit!), but I'm trying to hold out for their new W8 Lumia phone debut in September.
Naw, I didn't.
I was going to but more INTC this morning, but way too busy at work and not by my computer.
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