Sunday, October 22, 2017

What If Low Interest Rates Continue?

Most people are expecting interest rates to rise and inflation to increase.  But what if it doesn't?   Could this bull market continue for several more years, despite all the skepticism?

My thinking is yes, if interest rates continue to be low.

So I am going to start hedging against interest rates being lower for longer by investing more in REITs, dividend paying stocks and long term CDs.


For more on New Beginnings, check back Sundays for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC

Saturday, October 21, 2017

I'm Not This Good

"Don't confuse brains with a bull market." ~ Wall Street adage

 Everyday, it seems, our accounts are going up and frequently hitting new highs.  It would be wonderful if it was do to my exceptional stock picking.   However, I know that it is more likely due to an exceptional bull market.

So while I'm enjoying the market advance, I'm not bragging about it.   I know if will only take a bear market, or even a lengthy correction to make me look a stupid.

But until that bear market or correction comes, I will continue to take advantage of this market rally by staying invested and taking some selective profits.  That way I will feel a little less stupid when the inevitable correction or bear market appears.

For more on Reflections and Musings, check back Saturdays for a new segment.

This is not financial or investing. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC

Friday, October 13, 2017

Protecting Profits and Raising Cash

At 10 years into retirement, I cannot afford a 50-70% decline in our overall savings.  First, we are entirely dependent on our savings to cover living expenses.  Second, we don't have the luxury of waiting 3-5 years to recover our losses.

We have been enjoying this bull market and the recent advance.   However,  I also feel the downside risk is greater than the upside potential, and the risk continues to grow.    So I've been taking the opportunity to sell some profitable positions and raise some cash.  

For now, I am maintaining our core investment positions, acknowledging that the amount may lose over 50% in the next bear market.   However, since our core position represent about 33% of our investable assets, I believe we can safely handle a major decline in the stock market.   Thus, I can sleep well at night, despite the possibility of a significant bear market.

For more on Reaping the Rewards, check back Fridays for a new segment.

This is not financial, investing, or retirement advice. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC

Wednesday, October 11, 2017

My New Pain Trade Signal

"Markets tend to deliver the maximum amount of punishment to the most investors from time to time." ~ Wall Street Adage

The current greatest pain trade is shorting the market.   The next biggest pain trade is not being invested and being entirely in cash.   Interestingly, investors in these situations don't feel they are in a pain trade.   Most of them still feel they are right, but perhaps a bit early.

These investors are convinced that a market correction is imminent and refuse to consider that the possibility of the bull market continuing.  As long these investors continue to justify their investing strategy, the market will continue to grind up and perhaps even melt up.   It's when these investors finally throw in the towel and admit their pain trade that I will worry about a market top.

For now, I am still bullish, but also cautious.  So I am taking some profits in our trading positions, while maintaining our core holdings, which will continue to benefit from the rising market.

For more on The Practice of Personal Finance, check back Wednesdays for a new segment.

This is not financial or investing  advice. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC

Tuesday, October 03, 2017

Bears Getting Closer to Being Right

Every passing day is a day closer to a bear market.    So every day, the bears are closer to being right. So I'm preparing for the inevitable.   I'm trimming some of our positions, raising cash and creating an investment plan for when the market drops 10%.

The market will fall 10% someday.  And we'll be ready for it.

For more on Ideas You Can , check back Tuesdays for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC

Sunday, October 01, 2017

Easy Way to Become Rich

According the progressive pundits, Trump's tax reform only benefits the rich.   Since 45.3% of households (77.3 million) pay ZERO federal income tax, only the 54.7% that pay federal income tax will benefit.

So those that pay federal income tax are now part of the rich. Who would have ever thought it was that easy to become rich.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial or tax advice. Please consult a professional advisor.

Copyright © 2017 Achievement Catalyst, LLC