I'm actually glad that many of you are seeing a whacked out market - many of you for the first time since you've become investors.
I'll be darned if I can figure out what's going to work and what's not.... but in the meantime the dividends continue to pay me to go race my cars. LOL
The account I used for examples here etc is down about half a million bucks - all due to the oil patch investments (KMI - ETP - APU) These are down and down hard. I've been buying more of them. I can take the pain and I love the increasing dividend percentage. In the meantime - they're the death of an account on paper....
Here's what I DON'T like about this market -- an earnings hiccup -- and the shares are down in what I think is a way over reactive manor... and an earnings beat is rewarded too much. Shares of Amazon (AMZN) are trading at 886 P/E ratio. Really? OMG! To me - there's too much money trying to find a home - as it's coming out of "non working" names - and trying to find a home in what appears to be "working". It's chasing anything and driving names too quickly too much. I don't like that.
Typically what happens is those names that run up fast and large... the fast money comes out of there the minute something else begins to work. That never ends well.
What we have to remember is the country had to climb out of a big hole... when the market all but collapsed. We had a housing melt down and a financial crisis... so for the last several years - we really were in the proverbial "there's nowhere to go but up" kind of market. Now it seems we're more on a plateau.... Or what's called a "sideways" market - where things just bump along. It's always hard to feel good about being an investor in a sideways market. Many times you feel you're being left behind - then in an effort to catch up - you stretch your rules and start to chase the names that have gains. Be very wary of doing that. Think more about your money long term - earning a good dividend - buying more shares at lower prices (lower prices does NOT mean you are lucky enough to buy the very bottom!).
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