And around we go. I'm trying to remember why I didn't pick some more up when it was down around two bucks.
Well I certainly left my long positions a day too early, although I still feel some sort of correction is coming next week before the move up continues.
Bought some more FCX and AKS in the last couple of weeks... FCX has done great. AKS I bought too early and I'm breaking even, even after the run-up in materials/steel stocks. My IRA has almost broken even thanks to some dollar-cost-averaging. I'm still down a lot on MSFT but it's balanced out by being up a ton in MCD. I'm going to take a bit out here and wait. Still long on MCD, WMT, BRK.B, VZ, KO, and other boring stocks. Any of you guys still in DRYS? It's sick what it's done in the last month. On Dec. 3 it was a $3.70 stock (even lower at the end of November). It's trading at around $12.50 now. SICK!
What do you guys think about purchasing the following stocks now to hold for the next 10 years? Anything you would get rid of? Redistribute? Shell - 7% Continental - 8% United - 9% GM - 11% Exxon - 11% GE - 12% Cisco - 13% Microsoft - 14% Ford - 15%
My dad is trying to invest a bit for retirement (he's 56 now), and plans on retiring in about 10 years.
I wouldn't put 26% of your assets into US car companies. It's a long way from "saved from bankruptcy" to "profitable, successful company". They still have to redesign their business model, and they still have an image gap (which is only getting worse with the bailout) to make up with the foreign car manufacturers.
I was thinking the same as you (my dad came up with the percentages); I also don't know if I'd invest that much in United and Continental.
I'd also say the# of stocks you have up there isn't nearly the diversification you need...assuming this represents all of his equity investments....
Long term meaning how long? There's not a ton of diversification there. And for the long-term why do you want to gamble on F and GM both? What does one give you the other doesn't in terms of risk? I'd prune some of those back - especially where you're duplicating in sectors. F and/or GM may do well, but I'm not touching either with a ten foot pole unless I'm gambling. There's a lot of risk in that list. Throw in a healthcare stock.
Apple -- Steve Jobs <i> WASHINGTON (MarketWatch) -- Apple Inc. founder Steve Jobs on Monday said he's suffering from a "hormone imbalance" that's caused him to steadily lose weight, but he indicated he's healthy enough to continue as the company's chief executive -- for now. In a remarkable letter to Apple supporters, Jobs disclosed his ongoing health problems in an apparent effort to defuse "another flurry of rumors about my health, with some even publishing stories of me on my deathbed." The latest round of rumors took off after Apple (AAPL: 90.75, +5.40, +6.3%) said last month that Jobs would not give a speech at the annual Macworld trade show in San Francisco in early January. In his letter, Jobs said he decided a few weeks ago to make his health his top priority and determine the cause of what he called his "mystery" affliction. "Fortunately, after further testing, my doctors think they have found the cause -- a hormone imbalance that has been 'robbing' me of the proteins my body needs to be healthy," Jobs said. "Sophisticated blood tests have confirmed this diagnosis." Jobs said that he has begun treatment but that he does not expect to regain all of his lost weight until late spring. He insisted he's healthy enough to remain CEO. "I will be the first one to step up and tell our board of directors if I can no longer continue to fulfill my duties," Jobs said. "I hope the Apple community will support me in my recovery and know that I will always put what is best for Apple first." Jobs said he would not comment any further on his health: "So now I've said more than I wanted to say, and all that I am going to say, about this." In premarket trading Monday, shares of Apple rose more than 3% to $93.57 from Friday's closing price of $90.75. </i>
He plans on holding for the next 10 years. Good point on the autos. I was also thinking of telling him to get into a solar ETF.
Everybody and their brother are now talking about shorting treasuries, specifically the long bonds (10, 30 years). I like this strategy a lot, especially given the money printing and stimulus efforts the government is about to dump into the market
Check out infrastructure stocks over the past week or two... ugh. I should've bought more into the Obama Effect... at least for January. And DRYS is over $14...
Also - on these. For those of you who have experience with bonds and preferreds, is there any reason to pick the common shares instead of preferred or notes? I was looking at F/PS and RGM - they have yields of 35% and 48% right now with lots of appreciation potential, and I would think they would be more senior than common shares if things get dicey.
RGM has been on my watch list for a couple of weeks as has FCZ. The only reason I haven't pulled the trigger is I'm not entirely sure how this plays out or works, either (I usually don't buy preferreds). Wouldn't all the creditors, then bond holders get paid before the preferreds and commons get theirs? Considering these companies are making squat and are facing bankruptcy, what does that leave other than one big gamble? I think it's a gamble, but maybe not as much as just buying the common shares. Someone help me understand, too...
