Welcome to Dividend Income Investor
October 20, 2016
We have done very well in bonds since the 2008-09 financial crisis. The Fed has kept interest rate artificially low for a very long time and we have profited handsomely over an extended time period. But the winds of change are coming.
If Hillary wins in November, it is possible she will prompt the Fed to raise rates. (Yes the White House really does control the Fed. I know you dont believe it.)
We are making a concerted effort to get out of interest rate sensitive holdings, and buying segments that are less sensitive to rate hikes, such as floating rate funds.
We DO plan on holding the numerous individual corporate bonds and the BulletShares positions as they will mature at par: in some cases we bought the bonds ‘on sale which makes our returns even better. But we are watching the baby bonds and preferred issues as potential sales.
WE CONTINUE HOLDING THE GOLD POSITION.
We are placing SELL STOP orders on positions and IF, repeat IF, they drop in price, the positions will be sold. We are NOT advocating a direct sell right now. The stop orders are preventive measures.