Hope all of Steemit Nation is well tonight. I finally did some moves this week.
I had mentioned in prior blog that I had only two holdings BABA and BABB. I had taken profits in accounts in BITCF and left sleep me shares. Now the one I was watching and screwed up on was CCC a water play as I have always been into water back when we were going through 911/.com bubble.
The sonofabitch of course like local favorite (KKD) was purchased by private group for around $22.00ish.
I had watched this for years and knew in $12'00's it was great starting point for first of two to three purchases.
I saw it hit $12.95 but of course markets at all time highs so I figure I'd get it lower. I'm always cautious but this was a mistake. Still hurting on that one.
What I did this week was take some profits in two mutual funds while exchanges hit again - all time highs. One FKUTX, I only sold 20 shares and the other FKINX 375 shares. The key points are:
I hadn't sold from these two since early 2010 when I need some money to buy my own equities like WWE, PRMW, etc.
So the I think it is all a game regarding your Roth's and 401's - they (government) are going to come after that money very soon. Knowing this back in last decade I decided I'd never add any money into any account!
All accounts I manage are as safe as you can get - Roth and 401's. Too much trouble (IMO) doing traditional account as I've done but ended around last decade. Too much paperwork, fees, taxes from government in anything other than Roth or 401k. And I've never added any money since 2010 or prior, so I had to do my best homework before long term buys.
The profits I took this Wednesday were simply divy payouts reinvested into purchasing more shares. So I only sold the same amount of shares as was left after selling in 2010. So like FKINX I am left with 650 shares but the capital appreciation was 13% and I only relinquished 36% of the large holding. I relinquished 23% of FKUTX but the capital appreciation on those 20 shares (see DUK, NEE, SRE at all time highs!) was 84%.
So I have well over a grand of new dry powder in one account that needed to take some profits with no injury.
Now for 3 other accounts I did get an initial purchase today of AQUA which had an IPO last week. So I had my bids for $20.00 and they were filled today. So like BABA in 2015, I'll pick more AQUA since it will be long term (for now) at lower prices. Never buy all you can at once as a friendly reminder. But I'm a water investor and need to fill the void for screwing up on CCC which was/is drowning in debt - but hell who am I? Again just first initial purchase.
Also another signal was seeing ^vix hit 8.99 last Friday. I always love to see double/triple tops and bottoms and for me this was close enough to 8.84 in late July. And as then, markets go higher as well as the ^vix then (at some point!!) you'll see the ^vix really spike with selling taking place. When, I don't know. But I do know taking profits at all time highs without hurting yourself is always a safe bet.
Last, another reason I sold the only thing I can (two fund holdings) is due to American politics. I've made profit on everything since at least 2013 leaving sleep me shares warning people markets were overvalued then. Like BX a great example nowhere near $40.00, or VEOEY barely up from when I sold in 2015, and like NBBC now (purchase twice!) FNB. I had nothing else to take profits in. Again, not a big fan of buying IPO's like AQUA even BABA at low of day $90.00 on opening day during bull markets even with global money printing causing markets/equities to be best game in town. Nor do I like buying old equities like CCC at multi-year lows during bull markets. Yet allotment investing along with safe dry powder/cash in accounts, allows for future purchases like I did around $60.00 per share - last BABA purchase.
Buy in allotments with plenty of cash on sideline for more, and take your profits.
So I think someone else will start thinking the tax reform initiative is being priced in with PE of many equities and exchanges in general. Markets were overvalued prior to Trump. Pussyfooting by Republicans knowing Democraps are going to include deductions, pork, etc. instead of giving the people more of their money, I'm not so sure it will add much more pop to the markets. As a multi - business owner, I know small brick and mortar companies can use any aid they can receive. The working class is overtaxed.
But you'll hear delaying or slowly implementing tax revenue deductions but the pork projects and like an increase in child tax credits will be right away! Also President Trump wanted 20% at least for corporations, so he said 15% knowing he is surrounded by career politicians. So Republicans openly starting of at 20%, is a mistake. The Democraps will run with this number and I'm assuring you it will be 22% to 28% at best. Closer to 25% with shitloads of pork and high PE's - you'd better start factoring this in. And if by some miracle it is 20%, with simple filing, and no pork, the exchanges, equities, and GDP all boom I mean boom. But beware of the government worker/welfare slave complex. This large group wants no tax cuts for the working class.
God bless yall, LOTN
Oh YES - two of my main people Greg Hunter (county away) and Gregory Mannarino on Sunday on YouTube. I know they will talk about markets and tax reform.