Investment Opportunities

[aja8888]

I nibbled at the open this morning on SCHG, SCHD, JEPQ. Nothing much, as I don't know which way the market will be heading, but those are positions to which I had intended to add in any event.

What are your thoughts on buying into JEPQ? Just high income?

 

[MarieIG]

What are your thoughts on buying into JEPQ? Just high income?

There is some growth, but it is limited. Screen shot below. Only if I can get it when it's down, to be held in an IRA, reinvesting the shares for now, and totally not as core position. SCHG / QQQM are better pure growth plays, IMO. I may eventually take the income and use that to dollar cost average into a pure growth play.

 

[aja8888]

Only if I can get it when it's down, to be held in an IRA, reinvesting the shares for now, and totally not as core position.

I am thinking of doing the same to add to my IRA income stuff. I was loaded up with CD's and treasuries, but those are slowly sliding away. My core position in the big IRA I am pulling RMDs from is a collection of different things since I sold off the bond funds a while back and loaded up on pure fixed income. Right now, my RMD pull is near 5% due to age and the IRA has been growing slightly. DD will get it and have 10 years to empty it someday. ROTH conversions are not good for me now.

 

[Montecfo]

I would not be looking to add growth here unless in off-the-radar sectors like small or midcaps. Growth is not on sale. Value maybe or GARP.

I am nibbling on bonds where I can gete high quality north of 5% yields. Can't go wrong there I don't think.

I also like floating rate bonds. Those have done really well.

 

[MarieIG]

I am thinking of doing the same to add to my IRA income stuff. I was loaded up with CD's and treasuries, but those are slowly sliding away. My core position in the big IRA I am pulling RMDs from is a collection of different things since I sold off the bond funds a while back and loaded up on pure fixed income. Right now, my RMD pull is near 5% due to age and the IRA has been growing slightly. DD will get it and have 10 years to empty it someday. ROTH conversions are not good for me now.

Yes, I ditched the bonds funds in my IRAs with the exception of what's in Wellington, which is mostly in my traditional IRA, and loaded up on CDs that are starting to mature. I am aiming for a combination of income and equities in the IRAs, and income will include some dividend paying funds. I do have some time before RMDs although the traditional has not shrunk to the extent that I thought it would in spite of conversions.

 

[MarieIG]

I would not be looking to add growth here unless in off-the-radar sectors like small or midcaps. Growth is not on sale. Value maybe or GARP.

I am nibbling on bonds where I can gete high quality north of 5% yields. Can't go wrong there I don't think.

I also like floating rate bonds. Those have done really well.

Growth IS expensive, however I wanted a little bit. I am not backing up the truck.

 

[aja8888]

Yes, I ditched the bonds funds in my IRAs with the exception of what's in Wellington, which is mostly in my traditional IRA, and loaded up on CDs that are starting to mature. I am aiming for a combination of income and equities in the IRAs, and income will include some dividend paying funds. I do have some time before RMDs although the traditional has not shrunk to the extent that I thought it would in spite of conversions.

At my age (81), equities make little sense for me in the IRA, especially since I had that eye-opening health scare last July. I have SCHB and SCHG in the brokerage side, plus some long held preferred stocks and three tax exempt Municipal bonds (maturing in the next two years). I'm kind of like on cruise control now and just need to replace maturing stuff in the IRA.

 

[MarieIG]

At my age (81), equities make little sense for me in the IRA, especially since I had that eye-opening health scare last July. I have SCHB and SCHG in the brokerage side, plus some long held preferred stocks and three tax exempt Municipal bonds (maturing in the next two years). I'm kind of like on cruise control now and just need to replace maturing stuff in the IRA.

I am keeping the SCHG also NY municipal MM funds in my taxable account as it pays very little in the way of dividends. I do have SCHD in both taxable and IRAs. I also have a utility fund in my IRA that pays dividends, but got that when it was cheaper. My IRAs will most likely be legacy (Roth) and charity (traditional).

I suspect that DH will long outlive me, and would like to get things on cruise control for him before I shuffle off this mortal coil.

 

[Sunset]

I am always fully invested. Been this way since we ditched our EF back in 1990

Dollar strengthening so might invest in a trip to Canada this year.

Yes, it's lower than it's been in the past 15 years , so good time to travel.

 

[camfused]

Not gonna lie, I checked the link. Never in a million years did I think such a thing existed. Feels like crowd funding.

I forget the guy in India, I think, that did something like that...micro lending for small businesses. Like you I passed but I give Uhaul credit for thinking outside the box.

Yeah, this and Toyota Motor similar "bonds" have been discussed here in the past. Might want to do a search for them to get some feedback on them, if anyone is interested.

 

[TheWizard]

If a person comes into a sum of money, say an inheritance, and they know they are going to invest it, there is nothing wrong with waiting for a market dip to make your purchase. In fact, it could be very prudent.

Another situation where one might wait for a dip to invest is gaining control of a previous employer's 401k into an IRA rollover.

Flieger is sitting on a large sum of cash, wanting to invest. It makes sense to buy the dip (or dips.) Especially if investing in a market index fund. Some years the returns on these funds is in single digit territory and buying the index after a day where it dips 2% can wind up being significant.

Dollar cost averaging on a regular basis is a different animal.

DCAing, in my case, was mostly in my employer's 403(b) plan on a monthly basis for decades, so I didn't have much choice about when to buy.
Actually, I suppose I could have directed all new contributions to the MM fund and then moved them into stocks when the Voices in My Head told me to. But I didn't.

When you talk about coming into a Sum of Money, such as an inheritance, the rules are different.
Put all $X00,000 into VOO (S&P 500) on day one.

Then wait. If that $X00,000 lot decreases in value significantly over the next month, then move it all into VTI 32 days later. Rinse and repeat, building up your tax losses or your gains.

This assumes you know what you're doing. Many folks do not, without hiring a SHARK...

 

[OldShooter]

This action could be construed as "paying attention to current events" with respect to your investments, and therefore "trader things".

Flieger

I mentioned it because it is somewhat related to current events. I had been planning, but without much urgency, to park the money for a little longer time but the current craziness pushed me off the fence. However buying a 5 year bond is not IMO trying to become a trader.

 

[OldShooter]

.... buying the index after a day where it dips 2% can wind up being significant. ...

Yup. Unless the market went up by 6% while your intrepid market timer was holding his MM and waiting for the dip.

 

[Gumby]

....
Actually, I suppose I could have directed all new contributions to the MM fund and then moved them into stocks when the Voices in My Head told me to. But I didn't.
.....

You hear them too? I thought I was the only one. Mine argue with each other so much that it is almost impossible to do anything, so I just stay with what I have.

 

[steady saver]

Dollar strengthening so might invest in a trip to Canada this year.

I like this kind of investment!!

 

[Flieger]

So, I am not market timing, just a change in investment philosophy since retiring. Transfer of funds from 401k to Fidelity required liquidation and put in to SPAXX, so now determining my entries between the 3 buckets.

So back to my question. What are some of you looking at for Growth side of investments? I consider SPYI, QQQI, etc the income side so those don't count. I would consider individual stocks for this bucket if a good enough reason/foundation exists. Growth is all I have to consider at this point.

Flieger

 

[Dash man]

I use a tool called Fast Graphs to help me determine if a particular stock is at a good price point to purchase. You may want to take a look at it and use the free trial. I don’t have any connections with Fast Graphs other than as a subscriber.

 

[Closet_Gamer]

Perhaps germane to the conversation. CNBC has Cathie Wood, the charlatan - er, investor - that runs ARKK funds on this morning.

She’s had a great run for the last 6 months where she has walloped the NASDAQ! She’s a super genius. Five big tech trends! China likes Elon Musk’s Mom! Get in now!

Here is ARKK vs QQQ over the last 5 years … it’s really hard to outrun an index.

 

[Flieger]

Perhaps germane to the conversation. CNBC has Cathie Wood, the charlatan - er, investor - that runs ARKK funds on this morning.

She’s had a great run for the last 6 months where she has walloped the NASDAQ! She’s a super genius. Five big tech trends! China likes Elon Musk’s Mom! Get in now!

Here is ARKK vs QQQ over the last 5 years … it’s really hard to outrun an index.

View attachment 54188

Not sure of your point in this post?

Flieger

 

[Harris4crna]

Soveriegn Wealth Fund is in the works. Will be interesting to see how utilized. Cynthia Lumis believes there will be a digital asset component. I'll leave it there.

 

[Qs Laptop]

Not sure of your point in this post?

Flieger

Looks like another "index only" zealot.

 

[Closet_Gamer]

Not sure of your point in this post?

Flieger

Just that when searching for searching for places to put money, its very hard to find something that will outrun an index over the long haul.

 

[TheWizard]

Looks like another "index only" zealot.

There are lots of different indices.
An ETF that I own, MGK, tracks the CRSP US Mega Cap Growth Index...

 

[Qs Laptop]

So back to my question. What are some of you looking at for Growth side of investments? I consider SPYI, QQQI, etc the income side so those don't count. I would consider individual stocks for this bucket if a good enough reason/foundation exists. Growth is all I have to consider at this point.

Flieger

I would consider Eli Lilly, LLY. The weight loss drug they make, Zepbound, is just starting to catch on. There are various spinoff treatment applications for it, including sleep apnea, Parkinson's, heart disease, etc. The side benefits of weight loss are many--lowering blood pressure, relieving stress on joints like knees and hips, prevention of diabetes, etc. Medicare covers Zepbound for treating sleep apnea and is likely going to cover Zepbound's use for weight loss. Health care insurers are likely to follow.

Besides Zepbound, Eli Lilly has a drug, Kisunia, for Alzheimer's. It got FDA approval last July.

As always, do your due diligence.

[Edited to add: Eli Lilly announces earnings on Thursday.]

 

[OldShooter]

There are lots of different indices.
An ETF that I own, MGK, tracks the CRSP US Mega Cap Growth Index...

Well, yes. Funds like this are evidence that the hucksters have long since arrived. The roots of "index investing" began in the 1970s, supported by data that showed (and a half century later, continues to show) that only a single-digit percentage of actively managed funds beat their benchmarks over investment-length holding periods, typically 5-10 years. The S&P SPIVA reports show this every six months. In this context the benchmarks are indexes containing very broad holdings. Over time, the market recognized this and now it is something like 60% indexed. Morningstar research has documented this in another way by periodically reporting that low fees (I.e., index funds) are the only reliable predictor of fund performance.

As investor funds leaked away from actively managed funds, the hucksters began donning sheeps' clothing and adding the word "index" to their narrowly focused fund names. Hence we got "CRSP US Mega Cap Growth Index" and similar subterfuges. One of my favorites is "Sabrient Multi-Cap Insider/Analyst Quant-Weighted Index."

So now we have "real" index funds and a horde of fakes to winnow out. Ain't capitalism wunnerful?