March 1, 2017 — Things are Poppin’ – Buy RWR, GLD, TIP

My goodness!  I woke up this morning, turned on my computer, and saw several indices were hitting new records.  However, after about 17 years of (trying to) trade, I’ve definitely learned that what goes up must come down.  So, be ready, stick to your rules, and good luck.

Here’s the basic chart:basic

As you can see, We’re all in, except for IEF.  RWR finally poked its head over the moving average line, so it’s a buy.

Here are some more that I buy and watch:

all

All in, except for TLT. Like, who needs long term bonds now?  Ha!

And, finally, a few extras:

gld-uso-emb

GLD and EMB decided to poke their heads above water, too, so I bought small amounts of each of them, as well as TIP (chart not shown).

Just on a side note, I wrote my investment guru, Meb Faber. about how to manage dividends vs. shareholder yield when you are at the point in your life when you need them for income.  He asserts that dividends + shareholder yield (which happens when a company buys back its stock increasing its value) is superior since it adds value to your portfolio.  What I don’t understand is, you have to sell shares of a stock or ETF if you’re not investing for dividends alone, and frankly the dividend ratio on shareholder yield stocks is pretty crummy.  So, you’d have to sell some shares of that stock or ETF, and then you lose that dividend the next time it pays out.  He didn’t answer my question, but I did get a rather long answer explaining why shareholder yield is superior.  Well, fine, if you’re in the accumulation stage, but when you want income, you want reliable dividends.  Oh well… enough of my rant.  Maybe when he gets to retirement age, and is drawing on his portfolio, he’ll understand what I mean.

Anyway, take care, and good luck until next time.  If the market has to go down this month, or even tomorrow, let’s hope for a soft landing…

~B-

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