Today's Market
by Dr Invest
Our investment into TIP and BND rose from .33% yesterday to .45% today. Sadly, these numbers mean absolutely nothing when the U.S. Federal Reserve is competing in the purchase of Bonds. The Fed also, at will, can change the treasury yeilds which affect the value of TIP. (see: http://finance.yahoo.com/news/tips-etfs-hurt-rising-treasury-174748530.html) The bottomline, you really don't have any good defenses, but to invest where you are most likely to see a gain and hope the government doesn't manipulate the sector where you have invested. I am remaining hopeful that my bond investment will remain viable through 2012. Since I am using a trading method, "the ivy portfolio", I will wait until September 1st to determine my move in selling TIP or BND. I have moved my STOP-SELL 3% below the original purchase price of TIP and BND. I'm betting 3% that TIP and BND will rebound above 2%. At this point, in the face of the intervention by the fed, I would consider getting my 2% gain, selling TIP and BND and be happy with a 2% gain. We will keep an eye on the market for our opportunity.
David Kostin, Goldman Sachs chief U.S. equity strategist, in his latest note to clients as he pleads with them to take money out of stocks before they fall off the fiscal cliff. In the note, Kostin vehemently defends his year-end S&P 500 (^GSPC) target of 1250 despite the benchmark's recent rise to above 1400. The strategist still sees a 12 percent drop ahead, believing that Congress will fail to address the fiscal cliff before the election, and maybe even before the end of the year.
Again, the market is more confused than ever. Thinking back to the first of 2012, political confusion took the wind out of the stock market. Because I had stop-sells on my stocks, they automatically sold in January. Eventually, the politicians kicked the can down the road, but the fundamentals in the market in January looked poor. And the funamentals were poor because by the middle of April stocks began their plunge, falling 12% to the same level where the year began. Billions were lost by investors, but hopes of a new QE-3 provoked the stock market to rise to what is now 12% higher. Nothing has changed in the fundamentals and if anything, the fundamentals have worsened.
So here we sit, waiting for the hatchet to fall; and it will fall too!
(The above article is for entertainment purposes and not to be used as investment advice.)
by Dr InvestOur investment into TIP and BND rose from .33% yesterday to .45% today. Sadly, these numbers mean absolutely nothing when the U.S. Federal Reserve is competing in the purchase of Bonds. The Fed also, at will, can change the treasury yeilds which affect the value of TIP. (see: http://finance.yahoo.com/news/tips-etfs-hurt-rising-treasury-174748530.html) The bottomline, you really don't have any good defenses, but to invest where you are most likely to see a gain and hope the government doesn't manipulate the sector where you have invested. I am remaining hopeful that my bond investment will remain viable through 2012. Since I am using a trading method, "the ivy portfolio", I will wait until September 1st to determine my move in selling TIP or BND. I have moved my STOP-SELL 3% below the original purchase price of TIP and BND. I'm betting 3% that TIP and BND will rebound above 2%. At this point, in the face of the intervention by the fed, I would consider getting my 2% gain, selling TIP and BND and be happy with a 2% gain. We will keep an eye on the market for our opportunity.
David Kostin, Goldman Sachs chief U.S. equity strategist, in his latest note to clients as he pleads with them to take money out of stocks before they fall off the fiscal cliff. In the note, Kostin vehemently defends his year-end S&P 500 (^GSPC) target of 1250 despite the benchmark's recent rise to above 1400. The strategist still sees a 12 percent drop ahead, believing that Congress will fail to address the fiscal cliff before the election, and maybe even before the end of the year.
Again, the market is more confused than ever. Thinking back to the first of 2012, political confusion took the wind out of the stock market. Because I had stop-sells on my stocks, they automatically sold in January. Eventually, the politicians kicked the can down the road, but the fundamentals in the market in January looked poor. And the funamentals were poor because by the middle of April stocks began their plunge, falling 12% to the same level where the year began. Billions were lost by investors, but hopes of a new QE-3 provoked the stock market to rise to what is now 12% higher. Nothing has changed in the fundamentals and if anything, the fundamentals have worsened.
So here we sit, waiting for the hatchet to fall; and it will fall too!
(The above article is for entertainment purposes and not to be used as investment advice.)
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