November 13. 2017
There are indications that we are headed for a 5% correction/pullback. The banks, XLF, are the most important indictor and they are turning down. Volume is low. Seeing weakness in the semiconductors and big tech. More declining stocks vs advancers. And most importantly, the proposed tax-cut may NOT get passed.
If the current environment gets you nervous put in some close sell limit orders. BUT we do not expect a huge correction, and in fact, the long term bullish momentum seems to be intact. So that would present the opportunity for buying at ‘on-sale’ prices.
Last week we suggested EHT at $25.10—as it went ex dividend and we looked for a small pullback. The limit order was in and we got filled. So that turned out pretty much as we expected.
We continue watching numerous positions for potential buys…..but we do NOT want to over-pay. There is a new position that may be purchased this week……and some buys of current holdings that are going ex=dividend.
The last thing you want to do is read another BORING article on bonds and interest rates….and we are in the same boat. Nothing could be more mind numbing.
BUT the Core Portfolio contains a huge number of bond positions, and if you are following us, you MUST keep up to date on what’s happening. Or for that matter anyone managing their own money, which most of our readers are doing, you have to stay current.
The following article from our favorite financial advisor is must reading: why interest rates are not going up. If you read the liberal fake news press and listen to CNBC you would be convinced rates are heading higher. WE ENCOURAGE YOU to read this article: