the bond/equity markets moving in the same direction for now. UST yields edge up despite the rollicking in the markets today. I think there is a lot of pain in leveraged bond portfolios (those are NOT for retirement simply because of this thing called margin call/mark to market) so things are being sold to meet calls. And it might yet continue for a bit.
fairly big retracement = my HK stocks are basically unch or slightly down for the year now after a pretty good start. oh well! am increasing my beta here, lightening up on my low beta stocks PG, Conoco, Unilever, Sanofi, GSK to buy more of the higher beta names.
I think the recent pullback gave us opportunities to enter into the market, so it is smart to switch to high-beta stocks. I don't like predictions but my general feel is 1) small rally after this pullback 3) QE taper off, some paper pain 4) economy self-sustains itself, and the rally continues. Are my thoughts logical?
A preferred way of investing for me is to hold long with my eyes open. Whenever there are dips and stronger margin of safety, I will accumulate more. However, when the valuations are no longer attractive, I will sell off.
(11-06-2013, 04:09 PM)Salty Wrote: [ -> ]Kopi bro
"experts" are advising switching into cyclicals away from those "dividend" type stocks
Whats your opinion on this?
Me no expert... am doing the reverse. I switched from Yield to Cyclical previously when the yield went below my target. Of course I sold way too early back then as market was more comfortable with a lower target yield... Fortunately, the rising tide also lifted my Cyclicals and now that it seems to be still holding well, I've started to switch to Yield... Of course again way too early...
Best I can advise is to do what you're comfortable with (even if it means doing nothing) ie. such that you don't lose sleep...
I think besides general high beta stocks, could be smart to look at companies that will benefits from the interest rates.
ie. BNY Mellon. coupled with USD on the up.
Its not really value investing but just for general discussion.
just realized that the 30 year gov bonds already below par value, this could get worse, omg
let it get worse. as wat khoo teck puat favourite phase...when no one wants it, thats the time to buy a few million.
i have stuck to this line of thpught with immense wealth created.
One things that I observed is most blue chip drop a lot but our VB-33 favorite especially small cap does not really drop so much.
Very funny.
Correction almost certain on the STI
Hopefully becomes a crash...
Who else rubbing hands and looking to start some accumulation?