iBankCoin
Joined Jan 27, 2008
7,180 Blog Posts

Abandon Ship?

That was the text the came through this afternoon from my younger brother, “Abandon Ship?” He was referring to his positions in his IRA, wondering if it is time to sell his stocks. My reply was, “I’m not sure.” With Interest rates falling, where else will people go for yield? But, with stocks just off all-time highs and currency wars at hand, now is not the time to be a hero.

A lower open likely gets ugly fast as people ponder this question, then Abandon ship. So watch for things to get fast should we see a red open. A green open likely gets sold as well, so I’m not looking to sink my teeth in a bunch of oversold plays. Also, we are still in earnings season, here are a few notable companies reporting:

__

Here’s your Monday Momentum screen, littered with inverse ETFs:

_

Bulls need to hold the line here:

If you enjoy the content at iBankCoin, please follow us on Twitter

One comment

  1. numbersgame

    Just as a a side note: “With Interest rates falling, where else will people go for yield? ”

    That’s the wrong question/thinking. The vast majority of investors (such as yourself) only look at bonds in terms of dividends. However, just like stocks, bonds can also exhibit capital appreciciation. For example, in 5 months, 30-year bonds have gained ***20%.*** I expect another 10%-15% (though some time before we get here) before we eventually hit a bottom (top) during the next eventual recession.

    Also, bonds can also *depreciate*. Currently ,the search for yield has many Investement Advisors sending their unknowledgeable clients straight into the deathly jaws of High-Yield bonds. Those work until they don’t, especially when you factor in the IA fees.

    • 0
    • 0
    • 0 Deem this to be "Fake News"