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Strategies & Market Trends : Dividend investing for retirement

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To: Debt Free who wrote (3939)2/28/2010 2:24:43 AM
From: upanddown  Read Replies (1) of 34328
 
I am approx 12% cash and will definitely be increasing cash this spring but more by the end of April rather than March. I see a nice rally this spring that will exhaust itself by the end of April.

"Sell in May and go away" didn't work last year but that only convinces me more that it will be the way to go this year. A 60-year record of meager returns in the period May 1 through Oct 30 can't simply be dismissed as a statistical anomaly.
investmentpostcards.com

I really am looking for defensive plays to ride out the summer and fall, maybe TIPS or investment-grade bonds if treasury spreads widen. I really don't want inverse-market stuff since I see more of a slow grinding down rather than a big dive. Another problem with the inverse stuff is that they consistently miss their targets and a lot of them appear to be little more than scams designed to enrich the operators.

I would also like to do more deep-in-the-money buy/writes on div payers. The problem is with the VIX at 20, the low volatility makes it hard to capture acceptable levels of time premium on the call sales. I may have to accept lower prices on the calls because the downside protection they give you can be very attractive when you have a slightly bearish outlook.

What I don't want to do is sit in MMFs paying crap.

John
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