June 27, 2013
(Update: Rates are coming down on Thursday so it appears Bernanke or someone IS coming in trying to save the markets. It is now possible we could see the markets start to consolidate and stay flat….we could sit in Neutral. Volume is low. We are seeing Lower Highs. We are bumping up against the 50 day moving average. I suggest following the advice below.)
I suggest selling anything where you have a profit….while we are in this short covering rally.
(For now I am keeping DLTNX and LNCO and gold and Master Limited Partnerships)
This is a stop gap measure to reduce the potential for big losses……the markets look weak. Long term momentum is down. The ten year Treasury rates are not coming down quickly: today at 2.56. I want to take my profits or at least sell at break even and get out of Dodge…….you can always buy back in if we see a turn around.
For right now only selling positions where there is a profit. If the market really starts to tank, additional selling will have to be evaluated……meaning selling at a loss.
It is possible that Bernanke will come in and try to save the day but I’m not going to sit around “a hopin and a prayin”. There is the potential for an additional 10% decline here.
This is a good time to look at individual bonds, individual corporate bonds. I do think DLTNX is a buy here. Click Here.
In summary, high interest rates are not good for stocks. We have to see the rates coming down to see the stock market going up.
Go to “HOME” (top of page) for the most current posts. (Please respond to POLL Click Here) This blog discusses dividend paying investments that I find appropriate for myself…..and for investors seeking dividends and income. I am not an investment professional. You must do your own research before buying any position. All gains or losses that you realize are based on your choices.