02-20-2020, 09:49 AM
(02-20-2020, 09:35 AM)fenders53 Wrote: Eric I get all that. It's the story I hear on CNBC everyday. I don't accept the logic for Utes at this time. For now I can get a 2% yield from my ultra short bond fund. The share price moves in a 3 penny monthly trading range. NEE is obviously in momo land, but what does stable and slow grower XEL yield now? I don't even want to look. I know the PE is 30ish.
My last post wasn't intended to tell you to cash out. Just don't drink too much of the talking heads Kool-aid. Have you ever lost enough money to buy a BMW in a year? Lose a BMW AND a Mercedes in only a year (on paper) and then you'll understand why I have learned to tread carefully when bubbles happen. I just lost my AEP shares to a covered call sell. I'll live with that. About to lose my beloved XEL. XEL is well over a 10 bagger for me so I'll live with that too. I will just park that money and get the same yield with next to zero risk.
Hear me now, believe me later lol. I'm enjoying the conversation as always. Dissenting opinions are welcomed. I'm not cashing out of Utes, but I am taking baby steps towards the Ute exit. I'm up big and I'm not giving it all back no matter what happens. I'll get another chance to reenter and get my 3.5% Ute yields back. I don't know when of course, but it will happen.
Completely understand your moves and positioning, and you are in a much different place than I am financially. You are trying to preserve what you already have for retirement, while I still need to grow mine ~10X yet before I reach that point.
If I was in your situation I'd probably be a lot more cautious as well.
I have 25 years until retirement and am continuing to invest with every paycheck. I'll be dollar cost averaging for a long time yet, so the ups and downs don't concern me nearly as much.