Home Forums Hunting & Shooting Hunter's Campfire Dow Jones: Buying opportunity?

Our domestic banks with oversea presence do have outstanding loans in local currency's, they always have. But they work under the Basil agreement over there, which is very restrictive and they have to have tons of Tier 1 capital backing the loans.
Banks based in USA have never been in better financial shape, never. That's why they are crying, they can't make as much money under Dodd Frank law. But the banks abused their privilege when they used FDIC money to invest for their own profit and lost our money and Obama saved them and did not let them fail. The banks didn't break the law, but they were levered up to 40:1 in some cases(think Merrill Lynch).

Never try to catch a falling knife.

The stuff I read is all over the map

But the analysis I it the most faith in leads one to believe we're historically seeing a shift away from confidence in the public sector aka gov't and that capital will flee to the private sector aka business

The trump phenomena is one example of such ( but for the life of me I wish it'd been someone besides the Donald )

So if you buy into the market ( finding a bottom is a fools errand ime) it might go down even more

But I'd venture on balance over the next decade there will be better returns in the market than most other vehicles out there as capital flees gov't bonds and looks for returns elsewhere

My .02. Worth about half that maybe

And you can certainly find reasoned argument against said analysis

Obama told T. Geitner, specifically, to break up Citi and others (during the Lehmann meltdown) but Timothy balked and we got what we got. Supposedly, U.S. based banks that are too small can't compete with other Int'l banks especially the Chinese who are headed for a hegemony in banking ala the China Development Bank which many G7 nations have already joined. The end result would be our loss as the USD's world reserve currency status.

I bought GNL yesterday morning for 7.95 with the $8 load fee. I am not so sure I did the right thing. It went way up and back down a bit less than what I payed. I think it is a buying opportunity. I did prepare a bit though, I sold my world stock mutual fund on Wednesday and it took a bigger hit than any of my funds except biotech ( FBIOX) I bought GILD on Wed for 82.25 so I am down a bit. I didn't think Brexit would happen so I put the money back in on Thursday to catch the rally. I caught the rally and the nose dive. For Friday , I was down 2.45%, not bad , and for the week I am only down .3% . And yes, Sharecropper, I have a madcap value ETF (VOE ) that has been doing very well, except for yesterday. Also, to the poster that said a good run is coming, I agree. Here is why , there will be some pain in Great Britain but they will emerge stronger. If Germany , and the harder working countries leave it will leave the lazy a zzzz countries to starve. They dont produce anything anyway. The biggest problem is they lazy losers will default on their loans and stick it to the workers. Sound familiar? No?

Right now I am focusing my portfolio on REITs, MLPs, and BDCs with some high yield preferred corporate equities as well as some BDC baby bonds. I am following Analyst Rida Morwa on Seeking Alpha. Looking to take advantage of the current market volatility with high yield dividend equities.

Property REITs.
Business Development Companies.
Oil & Gas master limited partnerships.

King Dollar is the worlds currency for generations to come. No one, in particular the Chinese can not, and will never have the infrastructure, depth nor trust to be worlds reserve currency.
Most of the developed world Country's have no more than a 2-4 money center banks within their borders, small and regional banks are not in their banking system.
Our small and regional banks serve their commutes and or region, for instance your local banks in West Fl. Chinese banks do not compete in any way for lending facilities that your community uses. Insurance companies do but not banks.
Our big Insurance Companies are as big if not bigger than most international banks, that's why our inept president has them under the thumb the same as banks.
He will soon be gone, and I hope he's goes to Europe to further his experiment and leave the greatest country in the history of great nations alone. He is a boni fide hater of the USA I grew up in! World currency my ass, wouldn't that help us.

Sure is nice hearing from people who know ( Sharecropper) I didn't know our ins. Companies were bigger than most banks. I also believe the dollar is king. Remember a few yrs ago Russia and China tried sticking us in the eye with their new currency? Hows that workin for them? Sharecropper, you dont seem to mess with foreign stocks do you ?

anyone, individual or country, that would trust the Chinese with their money rather than a US bank deserves what they get.

Thank you for the kind words hookem. Yes sir I buy stocks outside the US, they represent 65% of public company's globally.
For the past 18 months they have been far more attractive than our multinationals, why, partly because of our stronger dollar and partly because they are behind the US about 2 years in their recovery from 2008-09 meltdown. European multinationals that derive at least 35-70% from US sales have been a big focus. Think MGDDY, Michieln Tires is from France, very, very low debt and a 4.5% dividend that they raise most every year. Selling at a low teen p/e. I buy ADR's not in local currency, you have a small amount of foreign tax you have to pay, but it's a not revelent.

They typically own the largest buildings and the largest ranches here in the western US.

Not enough blood in the streets yet to be sure of a buying opportunity in the U.S. I expect another leg down but Friday was so orderly it's hard to tell.

But if someone thinks it's a good time to get in, get in for a third of what you want to invest. Put in more if it goes lower and seems right. If it goes higher and you miss the chance to put in more, be happy you caught a ride with a third.

Soros said the Pound Sterling would go down 20%, so far only 8% IIRC, but some people are calling him a genius on his call. BS, the bastid is talking his book as usual.

I must say that now retired and fairly out of the growth mode and tending to the preservation mode it is all much easier to manage.

Good advice. Patience is the key, along with a long term horizon.

That money doesn't get to stay there forever. It comes back out LOL.

Actually bad advice, buying near the top of the market, while momentum is downward. Trying to catch a falling knife. Much better/safer is to buy when stock is on an upward trend and has broken into new price territory, on increasing volume.

Pal, now that is funny. So you follow the charting expert do you. A question for you, please show me any technical guru that has out performed the market with his entire portfolio.
You can't , because its pure luck, that's why the professional money managers don't employ the strategy. I wish it worked, it would make my job easier. It works during brief time periods.
You make the bulk of your money in bear markets, you just don't see it for a while.
Also, the most expensive money you can make is short term gains, why take so much risk using technicals when you have to put all your hope in the basket of other people not selling at the wrong time.
Chasing the hot dot is not a strategy , right when you get there, they refinance and you have to start over.
i truly have seen many people come in the business thinking they had figured it out, their charts have been proven fail proof, they were going to become billionaires because they were so smart. They all went bust.
It ain't smarts that wins, it patience. Buy quality, it takes you to town and
can still get you home.
It takes years to build a portfolio you can go to war with, any kind of weather, any kind of tax changes. I really hope you give quality a chance, I've rebuilt many a broken charting portfolio, it can hurt families.
I'm not being ugly to you, just trying to snatch your head from the punch bowl.

Those who know how to do charting analysis, do. The rest make fun of it. But it does take time to learn and isn't for everyone.

It seems like buying and selling is too risky for me. I am new to this but I feel I am better off buying some good stocks, funds and even etf's at what I hope is a dip and go with it. That works best for me it seems. My biggest problem is I have a lot of high dividend stocks and funds in my taxable account . I am trying to find some stocks and funds that are out of favor with low yield to keep my 1099's down. That is hard. Most ETF's and Index funds are tax friendly but most are on the 52 week high. My ROTH and IRA is filled with REIT's and oil stocks.

I am more than pleased to be in a position, retired with a fine pension and company covered health care, to be in a mode of substantial preservation whilst seeking some growth (60/40) that I lined out with my Fidelity advisor with whom we meet quarterly. So far, so good.