How soon we all forget...remember last year when the debt ceiling and the S&P downgrade was news? Markets took a 15% - 20% shellacking for that...and what happened after that debacle? The market powered even higher.
I have read the board over the weekend and the past few days and I have heard EVERYTHING under the sun about what could happen...but in the end...its all WiLd speculation. The market is out to get you and wants your money, you are not and never can be smarter than the market. If you think you are, you will be made an example of its ruthlessness. I know this from past experience.
And for those of you that 'warned' us to sell 2-3 weeks ago, the ones who 'think' you are right...are you?? the market was gonna do what it was gonna do whether you said anything or not. In the market, none of us knows ANYTHING. Its ALL guesswork. Its about doing your research, taking appropriate risks and hopefully come up on the better end as the result. Honestly, I cannot count the times when I sold as things went from bad to worse, only to regret my decision soon after. One NEVER sells in the mist of calamity because it is almost always the wrong move. I will site you a couple of examples. I retired from the military in 2010. Because of the demands of my Army career, I did not trade but invest. Didnt have the time to trade. I was stationed at FT Lewis and a peer who was from the area mentioned Starbucks as an investment. I researched it thoroughly and invested in 1998. Fast forward 4 years and I was up about 10% on the stock. I sold it because I felt it was going nowhere. Big mistake. 5 years later, it was up almost 400%!! Also, did the same with HAR...I missed a 600% return in less than 3 years AFTER I sold it.
That said, I truly hope everyone here comes out on the better end of this dilemma facing us!! Hooahhhhhhh
I bought NT at 3/share. Sold a bunch at 7.50/share. Then while I was in Vegas, I found out that they cooked the books. This was before smart phones, so I couldn't trade until I got back home.
In 3 days it dropped from 8 to 5. I sold at 5 ASAP. They went out of business in 2009. Buy and hold is for suckers.
Everything breaks down to fundamentals. The people that WARNED everyone that AGNC was dropping did not come to that conclusion due to divination. They looked at earnings and realized that core income could not support the dividend.
With a dividend stock, core income is the most important metric. With AGNC we have the perfect storm. A change in fundamentals combined with general market fear. AGNC is a buy ONLY at the right price.
WOW what a great day! AGNC up over 4%, TWO up over 5%. Bought both this am after chart patterns gave me a buy signal on the reversal off lows. Fundamentals are nice but they would never tell you to buy now especially in a down mkt. like today... I love chart deniers they will never get it cause it's too deep for them.
Sentiment: Strong Buy
I've been out of dividends REITs for a while once I saw the fall out coming... lots of reasons to sell I guess. take your taxable gains this year.... take your taxable losses this year... dividends taxes going up... ordinary income tax going up... no fiscal cliff resolution.. list goes on and on I'm afraid. Possible GDP contraction next year? If we get a bounce (small) it's probably a selling opportunity at this point?
...so I took the watchful waiting approach, now I'm down 20% in my mREITs portfolio, that equates to about $23K; too late to do anything else accept wait for the "norm" to resume or do I pull the plug on it all in anticipation of the sector sinking yet another 25 or 30%?