A Week of Going Nowhere
By: Tim McPartland,
Overall this has been a quiet week in the stock and bond markets–quiet is good. Quiet markets give us the opportunity to collect dividends and interest without all the drama of melt downs and melt ups. In a quiet market well chosen common stocks, REITs and MLPs will move higher if it is warranted–under the radar so to speak.
While May has been quiet our portfolios move slowly higher which is all we really expected this year to be–at best. Up just over 4% to date is probably slightly better than planned–we have said all along this will be the tough year–to make a 7% return will be a small miracle with our type of investing. The back half of this year has potential for some major meltdowns depending on the FED. We continue to push ahead with a belief that the FED will raise rates sometime (although not probably a good idea given the soft economy). At this point in time we will not be afraid to raise some more cash–in fact we will raise some cash-just a questiuon of when and how much.