I shouldn't have to remind any of you that today is the first day of DECEMBER --- and why is that important??
Because you need to get your rebalancing - if you do any - done this month and you can't wait til the very end of the year. Remember there are SETTLEMENT dates, and holidays... and weekends....
Be sure to check for dividend EX dates before you punch the sell button...
Be sure you're not setting up a "wash sale"!
Don't be afraid to TRIM if that makes you feel good or you still need to diversify.
REMEMBER WE ARE IN A RISING INTEREST RATE MARKET!!!! Anything with lower dividend rates can get taken down.... So no point in riding a nice gain into the sunset because you couldn't pull the trigger! In other words --- I've been out of ALTRIA (MO) except in the longer term retirement accounts.
DO NOT make the mistake of just looking at what the shares are paying on TODAYS share price -- and make the decision they don't pay enough!! CALCULATE YOUR OWN RATE OF RETURN ON YOUR COST BASIS.
Now -- look at your gain or loss if any -- what does the return look like going forward.... IT'S A GUESS! Will the EARNINGS be higher -- thus causing the P/E to stretch it's valuation?? Will rates rise faster than their ability to raise the dividend rate? It's ALWAYS about EARNINGS. But it's also about rate of return and money moves away from lower rates of return to keep up with current "scenario". Don't forget that.
Markets ARE ALWAYS CYCLICAL! Try to move WITH the market - you're too late.... the move that finally told you that the train left the station - the big money already moved there. You're going to sell something low to buy something high.... and that is trying to TIME the market... or rather what it really is CHASING the market.... <Buzzer here> Be certain when you're doing that - that there is MORE left to run and that doesn't mean just this afternoon!
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