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I’m Loving It!! Party On Garth!!

Well once again we are nicely green today—although my brain tells me it won’t last, but at least I can enjoy it while it is here–almost feels like the olden days.

The employment report was stronger in most ways than expected–more jobs created than expected, a lower unemployment rate (at 3.5%), but the wage portion was moderate at up just .3% – so markets proclaimed it is party time I guess. Interestingly interest rates took a massive tumble – now down 13 basis points to 3.58%. I would like to find the ‘smart person’ (i.e. talking head) who claims they knew this would happen.

On eTrade the 1st page that pops up is the one showing individuals issues and the gains or losses on the holdings. Today the 1st 2 on my list are the 2 Federal Agricultural Mortgage (AGM-D and AGM-E) issues which I only recently bought–1 is up 4.49% and the other 3.10%—even a blind squirrel finds an occasional nut. Of course it would have been better if I owned 1000 shares each–but alas I was just nibbling because of the lack of available funds. Of my 9 top movers 8 are green.

I hope everyone is getting a bit of a rally in their portfolios–it is a great way to head into the weekend.

12 thoughts on “I’m Loving It!! Party On Garth!!”

  1. The timing of this rally was fortuitous for me. For the last two weeks of December, I harvested losses to offset gains and the replacement issues did well with this week’s big rally. So I got the $3k deduction and carried newly achieved gains into the new year. Got a decent number of same issue swaps as well.

    I wouldn’t be unhappy if we got a stretch of down days now – more swaps and increased income.

  2. I have been moving money to 3 month treasuries, i was surprised that I could still get ~4.6% today. I have laddered about 10% of my portfolio in treasuries now. I have a bunch of ~3.5% notes maturing next week which I should be able to roll into 4.6% treasuries. While it’s not 7% it’s nice to have some money I am not worrying about.

  3. I am pretty much running out of cash to buy things at this stage. Dry powder accumulates quickly though. The “stock market” is not low enough for me to be very interested beyond normal amounts I put in via 401k/IRA for my wife and I. I have been slowing down with the kids college accounts hoping for market turmoil to add to the youngest two. One is off to college this year so no point in adding to his as we are in good shape. Thankfully each older child’s account can be used for younger so no urgency to use it right away.

    I am not very interested in selling. I like the cash flow. Selling a BB/preferred to make a quick 5-8% just results in I having to find something else to buy in due time to replace it. I did weed out a tiny bit like PW.A last year.

    By the time “something” happens to cause prices to drop I always have some way to scratch up some chicken feed to buy. I guess that is the plan for now. No rush to do anything much.

    1. fc, We’re pulling on the same oar. Not buying preferreds for cap gains, in it for the income, so these up days are not nearly as fun. Account values are surging and near every of 40-something positions well into the green, but much happier on those heavy down days adding to positions, lowering basis and increasing income and effective yield.

    2. I am in the same boat as you and Alpha. Sitting on my hands now. I like to do my buying on down days and I usually buy to hold for the income. I am not worried about flipping issues in most cases.

      That said, the last week of December I deployed a bunch of my remaining cash into some beaten down issues I felt were negatively affected by tax loss selling. I had thought about selling some other issues then to build back a bit more cash but decided to wait as I suspected they would rise in early January which they have and I did not want any more capital gains in 2022. So now I am just being patient trying to decide when to replenish my cash and what to sell to do so. Like you, no rush

  4. Trimmed a total full position in stocks/pfds in my 3 a/c (taxable, Roth, TradIRA) to a 7.2% cash position yesterday and today. I was 45% cash into June, put that to worth thru year end and will build to a more normal for me 20-25%.

    Did not eliminate any particular issues, and some sales were hard but positions grew to a higher % of total capital than I like so I nailed them down to reallocate. I also have begun the process of moving some of my Discover savings to FIDO taxable to invest, hopefully the volatility gives me some goodies. Best to all! Bea

    1. I have about 3 issues I want to get rid of. One I am still underwater by about $1.00 even with today’s rally. Normally I cost average down and sell some when I break even, but not this one. Two I cancelled my sell orders last week because I realized they are about 45 days out from X-div. and should rise by then. Today they shot past the price I was going to sell at so glad I did.
      Today’s news was mixed so surprised to see this rally on a Friday going into the weekend. It was risk off on almost everything. I wouldn’t touch B. Riley with a ten ft pole but look at today. Good for flipping if I had been interested.
      Still have about 45% cash to invest in one account.

          1. Bur, thank you for responding. I don’t know my way around as well as some others here. The links you provided and the comments by other readers sums up how I feel about Riley. At one time I did own some of the Riley BB but with the uncertainty in the economy and this market right now I am trying to be more conservative at my age and wouldn’t own them now. Don’t get me wrong, I have a few riskier investments currently but they are limited to part of my holdings. But like others here who might be flipping or thought they had stocks for long term hold I found when the tide went out this past couple months some were not as conservative as I would like. With the green we have been having the past week I am hoping to rotate into more stable stocks.
            DYDD, younger investors or ones with more appetite for risk may like to chance them.

  5. I had a few GTC sells fill today on things I am happy to be out of. Need some green days to free up cash…

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