Over the past nine months investors had the opportunity to buy three ridiculously cheap asset classes: municipal bonds last fall and winter, stocks in February, and corporate bonds early this year. I got two of those, viz. the municipal bonds and stocks. I missed the corporate bonds since I already had an overweight position in the fixed income class.
One strategy long term investors can use, in addition to simple asset allocation, is to wait for screaming buys to appear to deploy new money. Just keep the money in cash or bank accounts or solid money market funds until a screaming buy comes into view. Then deploy that cash in a few (2-4) blocks into the cheap asset class. One's asset allocation model for long term investments might help identify this class, or not.
Now my asset allocation model is again telling me to buy commercial real estate assets. It's also signalling a simple re-balancing into Treasury inflation protected securities. A few months ago it had me sell some of those to buy stocks. Now it wants me to reverse that very profitable trade. With my distractions, I've waited but am now noodling over it.
For now, I wait.
California claims to have made a budget deal. I'll read the details before commenting.
Yesterday was a good rally to the top of the consolidation range. I wonder if any real buyers are left to take it higher barring good news ? Maybe if earnings and guidance this quarter are good.
I put some money into Fido Fund to take advantage of any dip in the price of FCX. I have serious seller's remorse on that one. I should have simply put it into Fido Fund, instead of selling out in Obama Fund. But the distractions clouded my thinking. Oh well, perfection is a high bar to clear.
Word of the Day
"Entelechy" - noun [$10] Philosophical
Entelechy means 1. realization of potential; 2. the supposed essential nature or guiding principal of a living thing.
Sentence: To avoid going nuts in retirement, Bunkerman released the intellectual entelechy of the verbal half of his mind to study the humanities and languages. So far, its working.
Le Mot du Jour
"Se méfier" - pronominal verb; takes 'de'
Se méfier means to not trust, to distrust.
La Phrase: L'homme du bunker se méfie de l'autorité.
Sentence: Bunkerman distrusts authority.
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32 comments:
theeeee Yankees win....Yahooo
Sox lost awww shucks no wait.. Yhoooo
Mets win...Yahoooo
first place tie between Red Sox & Yankees.
Hehehe ...
Of course the Yankee entelechy drives them into first place.
sox fans with gouvno these days....
lol, tak.
the Polish is gówno, but phonetically, goovno wooks best.
Red Sox jest gówno.
Red Sox are s***.
:)
geesh When Art says get in....RUN FOR THE HILLS!!!
seller's remorse on CAT, too.
shucks ...
Mrs B nonono cry about sales...atta girl...your the best.
lol, true ...
There are about $15 billion in legitimate spending cuts, but another $11 billion in tricks and games. $1 billion is saved by delaying payroll payments that would be due on June 30 to July 1 (a different fiscal year). $1.7 billion is saved by borrowing from Redevelopment Agencies, but that exact plan was ruled unconstitutional just last year. I have no idea why they think it will be ruled otherwise this year. $1.9 billion is taken from local governments, but needs to be paid back within three years etc.
like the good CFO's of companies reporting now Bunky...slide the pea from shell to shell...bet on the come ..things better get better in the second half indeed.
Bunky fins as a ratio of spiddy appear to be rolling over...they have led prior declines...from your "it's different this time" point of view, any concern?...or did you zoom out your spiddy chart inverse hs.
I don't trust this move.
yes, I saw that inverse H&S on the weekly S&P. It measures to the 1200 area that I've been positing as a likely place to go later this year.
I'm long enough in Fido & Krypto to do OK if I miss it, but I need a better feeling to go back hard long in Obama.
I don't lile the political concerns and unless Obama reappoints Ben, I fear trouble.
."or did you zoom out your spiddy chart inverse hs."
now if I know Frosty..now.THAT'S A SHOT!!
Loooooooooooooool
well Bman .... you should fear trouble
this is Ben's farewell tour
Buffet, Rogers, and Gross are telling us that inflation is coming. Dump your bonds and fixed assets.
that's what happened in the late 1970s when a liberal D appointed Miller to run the Fed.
I'm not sure inflation is coming, but simple stagnation might happen.
I'll stay diversified: TIPs, gold, real estate, stocks, munis, other fixed income.
strip clubs, parking meters, and running numbers are also a part of a well diversified portfolio, according to Markowitz....
anyone have a spot price for the " triple crown"...any discount when purchased by the gross.
I went ahead and topped off the TIPSs from US stocks ... following Krypto's orders.
here Krytpo, have a dog biscuit for your fee.
you're in the ball park, mfl, but not correct.
Bunky...you 86 the darkmeat luvers...now blocking the darkmart...can she post if she wears the burka.
Hmmm I wonder what language frosty is writing in ?
I just got a big Latin dictionary, and an ancient Greek one, too. And I even have an ancient Egyptian hieroglyphic one from London, but that doesn't look like it.
if "they" can kncok FCX back to 50, I'll buy some
maybe Inuit ?
maybe frosty got the peyote mixed up with the pemmican in the possibles bag ?
nonono worries Bunky...MFL59 the constant cockblock play...I'm accustomed to the maneuver.
"cockblock play" ?
Sheesh, am I from Mars ?
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