I sold most of my bond funds and at least one Preferred position so far so to take advantage of Sequester opportunities. The opportunities will arise as the administration uses fear tactics to #$%$ the market. The so called Sequester was a Bipartisan bill signed by the President so it must be in our best interest. A 2% across the board spending cut in the private sector would be a cake walk.
ray858945 !!! I dont know. I see the public spending less at WalMart because of the 2% Fica increase. Tax payers with good incomes(but along way from rich) planning their spending around the new tax increases. The Sequester is going to happen, the complicit media will blow it out of proportion. I expect a market downturn and want a cash cushion. I plan to sell all Preferred positions that i paid a stiff premium for . At the present time Preferred prices are rising and a good time to sell. If there is the pullback i expect i will buy good solid Blue Chips(PG,JNJ ect) and utilities(DUK,ED,PNY) if and when the price is right. Usually when the Common stocks recover money flow back from the Preferred,then i sell the common and move back into Preferred when they are cheap. If you stay with good Blue Chips and Preferred you are not hurt bad when wrong. Thats not a good answer but that all i have.