There are a few things to consider right now...
The federal reserve is buying most of our 10 year bonds. They currently own almost 30% of the outstanding 10 year debt. QE is the largest scale 'science' experiment ever. It has to end sometime (although the Japanese have kept it up for 20 years, but they're happy with a Zombie economy). The Fed is doing the best they can, but we cannot predict the outcome with any degree of certainty. Outcome? Uncertain.
Congress is either unable or unwilling to implement their responsibilities. They have proved this on multiple occasions. I've never seen congress so divided. Outcome? Uncertain.
Obama is getting ready to bomb Syria. Syria is a former Soviet satellite state and they are still closely aligned with Russia. Putin just tweaked Obama's nose during the Snowden issue. Syria is no Iraq of Afghanistan - they have a serious anti air defense system and Russian backing. The Russians are sending Naval forces to the med to counter our moves. We're now playing a nice little game of chicken with the Russians. Outcome? Uncertain.
Maybe I'll miss a giant upside move, but right now I'm 59% cash and 24% individual issue bonds (as long as I don't sell before maturity I get my principal back). I'm good with that. I'll think about adding to my new DGI portfolio in a month or so. Until then, I'll sit back and watch these events unfold...
Oh... I'm not advocating liquidating existing positions based on current events, especially if you have a longer time horizon. I'm in the middle of revamping my portfolio and choose to wait until the clouds dissipate a bit before I redeploy assets. There may be a buying opportunity up the road a bit....
The federal reserve is buying most of our 10 year bonds. They currently own almost 30% of the outstanding 10 year debt. QE is the largest scale 'science' experiment ever. It has to end sometime (although the Japanese have kept it up for 20 years, but they're happy with a Zombie economy). The Fed is doing the best they can, but we cannot predict the outcome with any degree of certainty. Outcome? Uncertain.
Congress is either unable or unwilling to implement their responsibilities. They have proved this on multiple occasions. I've never seen congress so divided. Outcome? Uncertain.
Obama is getting ready to bomb Syria. Syria is a former Soviet satellite state and they are still closely aligned with Russia. Putin just tweaked Obama's nose during the Snowden issue. Syria is no Iraq of Afghanistan - they have a serious anti air defense system and Russian backing. The Russians are sending Naval forces to the med to counter our moves. We're now playing a nice little game of chicken with the Russians. Outcome? Uncertain.
Maybe I'll miss a giant upside move, but right now I'm 59% cash and 24% individual issue bonds (as long as I don't sell before maturity I get my principal back). I'm good with that. I'll think about adding to my new DGI portfolio in a month or so. Until then, I'll sit back and watch these events unfold...
Oh... I'm not advocating liquidating existing positions based on current events, especially if you have a longer time horizon. I'm in the middle of revamping my portfolio and choose to wait until the clouds dissipate a bit before I redeploy assets. There may be a buying opportunity up the road a bit....