S&P 500 Tops Previous Record High

[RobbieB]

My guy is not a small operation like Bernie. It's Bank of America - Merrill Lynch.

I think they'll be around for a while -

 

[NW-Bound]

OK. Again, looks like you are safe.

About divie stocks, they have had a good run YTD. Some ETFs like Schwab's SCHD report a 10% gain YTD, like your portfolio. Some of my stocks like JNJ, ATT, Verizon, Walmart, 3M, etc... are up more than 20% YTD. Of course, I did not have enough of them, so the gains are diluted out by the stinkers. But that's the price to pay to be diversified.

PS. Merrill Lynch almost bit the dust, if it were not for BoA bailing them out. They were in over their head in subprimes. Their clients' assets would still be protected though, unlike Bernie's customers.

PPS. I also have accounts with Merrill Edge, a subsidiary of BoA. They are however self-directed accounts.

 

[RobbieB]

I remember seeing Verizon and AT&T on my list.


Oh yeah, I remember the B of A buyout too. Pretty funny eh? Remember B of A whining about the government "forcing" them to buy Merrill? Oh the pain...

Merrill has been stacking dough for B of A ever since -

 

[UnrealizedPotential]

I think it depends how earnings do. If earnings are decent we will stay at this level in the 2130's and higher. If earnings disappoint then we will likely see a correction or in the very least be in a trading range. Which one is more likely? Who knows?

 

[Closet_Gamer]

"News Alert: Brits vote to Brexit! Global equities crash pulling down US markets! The end of stock investing is at hand! Western economies as we know them will be shaken to their foundations! Run run run! Sell sell sell! We're all going to die!"

Oh, wait. Nevermind. Nothing to see here. We now return to our regularly scheduled market hypochondria.

 

[NW-Bound]

Oh yeah, I remember the B of A buyout too. Pretty funny eh? Remember B of A whining about the government "forcing" them to buy Merrill? Oh the pain...

Merrill has been stacking dough for B of A ever since -

I do not own or follow BoA stock, so am not aware of how profitable Merrill Lynch is.

I opened self-directed accounts with Merrill Edge because their offer for some free stock trades is just too good to pass up. If and when they renege on that, I may not stay with them, and may move the money to my existing Schwab accounts. Schwab has free trade on their own ETFs, plus some others.

I think it depends how earnings do. If earnings are decent we will stay at this level in the 2130's and higher. If earnings disappoint then we will likely see a correction or in the very least be in a trading range. Which one is more likely? Who knows?

Yes, the pundits start to talk about this. And as Alcoa just opened the earning reporting season, we will know soon in the days ahead.

 

[jollystomper]

The "Brexit week" started with big gains in the first several days... I sense a pattern here...

 

[eta2020]

OK. Again, looks like you are safe.

About divie stocks, they have had a good run YTD. Some ETFs like Schwab's SCHD report a 10% gain YTD, like your portfolio.

As far as SCHD and VIG goes I think it is more Wide Moat, high quality tilt of those ETFs that caused 10% gains.

They usually outperform in flat and down markets and underperform in up markets.

 

[NW-Bound]

Yes. While the above ETFs beat the S&P by 5% in the last 6 months, there were other periods where they trailed the S&P by that much. Different segments of the market take their turns under the sun.

One can make a lot of money if he catches the sector rotation just right, but of course it is not easy.

 

[eta2020]

Well it looks like SCHD, VIG will average out to beating S&P especially if you add in dividends.


High quality companies with steady raising dividends tend to do that.

 

[NW-Bound]

Didn't Farma and French show that small-cap value stocks outperform over long periods?

Of course small-cap values do not do that every year. My point was that no segments outperform all the time.

 

[Totoro]

Didn't Farma and French show that small-cap value stocks outperform over long periods?

Of course small-cap values do not do that every year. My point was that no segments outperform all the time.

Yes. Supposedly cheap (as in, low book value) & small outperform consistently with long intermediate underperforming stretches.

Greenblatt claims cheap (as in, low P/E) and high ROIC works.

All those make sense: big companies can't go 10x as easy as small companies, a high ROIC indicates a company with a winning business model, and low competition. Cheap doesn't need explanation I guess.

The volatility however in aggregate goes up as well. Small companies go bust more easily, for example.

 

[dixonge]

Looks like all 3 major indices will be at new highs today, or in the near future. It's been an interesting ride, so far this year!

 

[LOL!]

PSA: S&P500 traded at over 2200 overnight. I recall some folks were saying they would take action at 2200 or other were bets made, but I forget the details.

 

[DrRoy]

Looks like all 3 major indices will be at new highs today, or in the near future. It's been an interesting ride, so far this year!

It would be great if the last 2 years of consolidation serves as a rally base, but we will just have to wait and see.

PSA: S&P500 traded at over 2200 overnight. I recall some folks were saying they would take action at 2200 or other were bets made, but I forget the details.

I took 2% out of equities in August around 2185 as part of a long term AA adjustment approaching RE. Now I will look to 2300.

 

[W2R]

Wow! That's lovely that the market is doing so well. S&P 2202, Dow 19,001.

Back when I did my original Wheee!!! post, in 2007, the Dow had just risen past 14,000 and that was a record high. Now, we would all be crestfallen if the market fell down to that level.

 

[Amethyst]

And look what happened!!

Back when I did my original Wheee!!! post, in 2007, the Dow had just risen past 14,000 and that was a record high.

 

[audreyh1]

PSA: S&P500 traded at over 2200 overnight. I recall some folks were saying they would take action at 2200 or other were bets made, but I forget the details.

I'm just watching CAPE10 climb up steeply as company earnings haven't been keeping up with equity prices.

I'm expecting my portfolio to take a severe beating one of these days, who knows when, but we are almost 8 years from the low of 2009. We had a solid correction at the start of this year, but it didn't slow down the rise much.

Santa Claus rally time - it looks like a classic this year. This is the time of year my distributions are paid in cash and I take my annual withdrawal. I always prefer my equities be higher when distributions are paid and I take my withdrawal.

 

[audreyh1]

Wow! That's lovely that the market is doing so well. S&P 2202, Dow 19,001.

Back when I did my original Wheee!!! post, in 2007, the Dow had just risen past 14,000 and that was a record high. Now, we would all be crestfallen if the market fell down to that level.

OK, so I suggest you wait until Dow 21,000 this time!

 

[Totoro]

Yeah, we should have a poll on Q1 2017 equity returns.

My (virtual) money would be on minus 10%.

 

[W2R]

And look what happened!!

So true!

OK, so I suggest you wait until Dow 21,000 this time!

What's the fun in that!


Ah well, it's up and down, up and down, the market rollercoaster again.

 

[Totoro]

Great contrast: Blue shirt vs. Yellow shirt reaction.

 

[W2R]

Great contrast: Blue shirt vs. Yellow shirt reaction.

Blue shirt looks happy like me. Yellow shirt looks kind of bored, though, probably dreading the inevitable drop.