What kinds of changes in your future investing plans have you concluded are necessary? Do you see yourself allocating more to Short Term TIPS Funds, REITS, Global Real Estate Index Funds, Agricultural and Grain stock indexes, Energy, Healthcare . ...what?
The immediate impact from QE3 I would assume is a +10% increase in the equity market over the next few months. I was trying to find out what the impacts of QE1 and QE2 were on equity prices, could not find the information, but I remember reading it was around 10% each time. I am sure someone on the board knows and will post.
Your post on short term TIPS piqued my interest and I will be looking into them. Measured inflation is low which allows the Fed to go ahead with QE3 so I generally find bond funds unattractive at this point. I believe there is a major bond bubble in the market.
Right now I am doing what I have been doing for the past few years investing in the banks, FAS, PRISX, and the semiconductors, which have not performed, intc, amat, soxl, usd, fselx, and to some degree prscx. I will reiterate what I have already posted for the economy to recover the banks and semiconductor sectors must recover. (Although not an original thought one I believe is true.) One-half of my portfolio represents these two sectors; I am not a believer in diversification.
I was looking at san, eufn, ewp and bbva in mid-August but missed the move although they are on my watch list. Maybe a European recession next year returns the prices to where they were although one can argue they are undervalued(?)
My cash holding is the highest it has been in 30 years 3% (no joke) and even I have to laugh at that number.
My life is good floated above the financial crisis, stayed readily employed, and have a portfolio at all time highs like many on this board. Most articles tell one how to attain financial goals but little is written about what one does when one has achieved them. That is what I am currently trying to figure out.
As always,
MGJ |
