This board has been boring me lately with all the spam posts and inane comments so I think I'll take the opportunity to add to the mix in an effort relieve a little of my boredom.
I don't know about you, but here in Ohio the sky didn't fall today. The markets haven't tanked and so far YTD I'm up 7.35% despite my increasingly conservative investment strategy. Hmmm …... pretty good for me and better than the Dow, NASDAQ and the S&P. How is this possible? Based on what our government has been preaching over the last month I should have expected a loss of 3% to 7%!
Could it be that despite the Presidents best efforts to spread fear class warfare he is no longer believable? Or …... could it be that the purpose of the fear mongering was really intended to set the stage that will allow the Democrats to blame any future pull-back in the economy or the markets on the Republicans?
Does anyone NOT believe that with or without sequester our economy and/or the markets would have experienced a pull-back of some duration in the next 1 ½ to 2 years? A pull-back of moderate depth and duration is almost a sure thing.
But …... be advised, when a pull-back happens the President and the Democrats will make the most of it and even encourage it. IMHO it's vital to their strategy to slam the Republicans before the mid-term elections in an effort to gain a majority in the House and increase their majority in the Senate. No pull-back or an early mild pull-back and the Democrats are likely screwed.
The question that I don't have an answer for is: “Are the Republicans too stupid to combat this Democrat strategy?” Only time will tell.
In closing, does anyone believe that finding a reduction of 1.5% to 2.4% in FORECAST government spending is difficult? Heck, it should be as easy as “falling off of a log.” …... but, it would set a precedent and that's not in the Democrats best interest ….. or, their objective to buy your vote with your money.
Well, Rog, remember I have about 20% margin in the taxable account, and because feb 1 and March 1 were Friday's, my ytd numbers include mar 1. That said, total investment return ytd thru 3/1 is 11.84%....this includes dividends, flip gains and unrealized market appreciation. The s&p 500, without dividends and no flips is up 6.45% thru 3/1. As long as Uncle Ben lets me earn over 15% on AGNC while I pay Fidelity 1.77% (1.75% using a 365/360 method compounded monthly). I'll do it.
As to the socialist pig, he cannot be trusted in dealmaking. I spent 40 years representing clients making deals.....M&A, buy-ins, buy-outs, split-ups....you name it with private companies and I've done it, first hand at the negotiating table. There are some fundamental ethical rules.....mainly you don't try to fundamentally change a deal after the dealbreakers have been agreed to and you are working on the fine points. The second is you honor your word. You say you agree to do something, you do it. It's called honor.
In 2011, the socialist pig had "yes" from Boehner on a big deal which included 800 billion of new tax increases. They were working on the fine points when the pig demanded another 400 billion in tax increases. That's when Boehner walked out on the big deal, as any business person would do on a business deal.
The sequester was the pig's idea. He insisted on it. The Repubs agreed. It became law and the pig signed it.
The sequester is nothing but spending cuts. The pig agreed to nothing but spending cuts. Now he wants to replace some spending cuts with tax increases......a fundamental breach of honor. This is where the Repubs are failing to communicate because even Joe Sixpack understands keeping your word.
People like Obama are very soon outcasts in the business world. Honorable people won't do business with a dishonorable person. The socialist pig is a snake who can't be trusted.
My YTD performance was at COB 2/28/13, and also included dividends, etc. But ..... it also included an 11% cash position (a total loser) and no trades since I made none (patiently waiting for a pull-back). Plus, it's against my philosophy to have ANY DEBT.
With that said, your performance, in my view, is outstanding ...... just a little bit risky for my taste ..... probably due to my advancing age and senility.
I'm also glad to see your ability to "win the hearts and minds" of those who may have a somewhat different view than you has not suffered.
Lastly, I must STRONGLY OBJECT to you using the word "honor" in the same sentence as the word "pig" ....... in my view, that association demeans the word "honor". Shame on you ..... you know very well that among politicians there is NO HONOR, just money, power and getting re-elected ..... you should apologize to we who still believe in honesty and honor. Do it!
Lastly ….. I'm tired of hearing the Republicans say that the sequester cut in forecast defense spending is a disaster …. balderdash, I'm more than a little familiar with how defense dollars are spent and trust me, there's a huge opportunity for savings. Some sage once said something like ….. if you keep doing what you've done (for the last 50 years) and expect different results you're just plain stupid!
Rog, I believe you are correct about the defense spending. I worked for two defense contractors in aerospace for 25 years and the amount of waste is ridiculous, especially the "cost-plus" contracts. If the DOD hired unbiased auditing firms to oversee the defense contracts they could reduce defense spending by 25% without losing anything. But then that can happen with any government spending program.