Time to buy? What are you buying?

[boatfishandnature]

I began to buy this week. I had reduced the stock component of my portfolio to 22% early this year (glad I did) and am buying back in gradually. It is impossible to time the bottom, but missing out on a recovery from a deep fall (even if the recovery only happens 12 or 18 months from now) makes a significant difference to your long-term returns.

 

[audreyh1]

Just out of curiosity, have you ever considered switching from the mutual funds to the ETF versions? I did it just to avoid this very situation. I like the ability to know the price I am buying/selling for. That's assuming there is an ETF alternative. I know things like Wellesley don't have them.

IMO ETFs have been behaving poorly in this panicky market environment - often trading at significant discounts.

 

[pb4uski]

Just out of curiosity, have you ever considered switching from the mutual funds to the ETF versions? I did it just to avoid this very situation. I like the ability to know the price I am buying/selling for. That's assuming there is an ETF alternative. I know things like Wellesley don't have them.

While I'm out of equities right now, when I do get back in I will definitely go with the ETF version rather than the fund version where possible. Though I would often wait until 3pm to do mutual fund trades and look at how the ETF had done for that day to get an idea of what the mutual fund might end up settling at... especially when deciding how much to sell for tax gain/loss purposes.

Though I am considering other ways to partipate in the market with less risk and exposure as it seems that speculation overwhelms investment in today's market with program trading, short selling, etc. And then there is the Fed proping the market up by lowering interest rates so fixed income looks less attractive by comparison. Buying index leap calls instead of the index? Geared index ETFs? Perhaps it is the holy grail.

 

[latexman]

I picked up a little AMLP for $3.25/share. $0.19/Q divvy. That's a 24% return (right now) with a chance to 3-4X in price down the road.

Enter at your own risk.

 

[jazz4cash]

I've been picking up short duration, quality munis. The yields are at levels I haven't seen in a long time for bonds maturing in 3 months to 2 years. 3x-4x CD rates.

Yes, I'm dipping into that market too. A rated, 4% yield, federal tax exempt. Going out a little longer than you, though, to 2024-2026.

I have muni’s out past 2027 and beyond, but the yields are not as attractive as the shorter durations so that is where I was concentrating my buys, plus I needed to filled the ‘20, ‘21, ‘22 rungs of my ladder. That is where I had the most called bonds. I filled those buckets back up and increased my overall yield by a lot.

I'd like to take advantage of the sale on muni's but the very excellent deals I saw Monday morning are no longer available and I was not prepared to move that quickly. Do you use out of state muni's and do you buy bonds that are priced above par if the YTM/YTW is attractive? What about experience with bonds being called? I'm guessing bonds with less than 5 yrs to maturity don't get called too often.

 

[cnocmmz]

Okay, I decided today to start putting some of my money back to work. This morning I purchased shares of C, CMG, MAR and V.
Is anybody else dipping their toe in and if so, what are you buying?

Yep....Risky....XOM

 

[COcheesehead]

I'd like to take advantage of the sale on muni's but the very excellent deals I saw Monday morning are no longer available and I was not prepared to move that quickly. Do you use out of state muni's and do you buy bonds that are priced above par if the YTM/YTW is attractive? What about experience with bonds being called? I'm guessing bonds with less than 5 yrs to maturity don't get called too often.

I always use YTW which takes into account a known call date and par discount/premium. I use both my own state and out of state bonds. Which ever gives me the better deal.
If you use a search tool like Fidelity’s all this info is at your finger tips.

 

[Dash man]

Today I bought some WMT at $108.83 and also some KO at $41.39, which has a good dividend.

 

[Mr._Graybeard]

I'd like to take advantage of the sale on muni's but the very excellent deals I saw Monday morning are no longer available and I was not prepared to move that quickly. Do you use out of state muni's and do you buy bonds that are priced above par if the YTM/YTW is attractive? What about experience with bonds being called? I'm guessing bonds with less than 5 yrs to maturity don't get called too often.

Yes and yes. In this interest rate environment I generally assume the bond will be called. If interest rates start ticking up, that may change. Keep in mind that bonds with a short duration may be several years old when they come up on the secondary market ... some of the bonds on the market are there because the seller anticipated a call.

One thing you want to watch for is bonds that have special calls already in effect -- common with affordable-housing and student-loan paper. I hold a few of those bonds but I wouldn't go in at much above par. The issuers sometimes like to nibble away at that debt, which could hurt if you bought at a significant premium.

I don't get a state income tax break on any in-state bonds I hold, but I buy them anyway because I know the institutions. I bought one from a major regional hospital yesterday, and a GO from a county with a midsized city today.

 

[target2019]

I bought ADM shares today. These replaced a lot I sold in Dec/2019 for TLH.

 

[JoeWras]

My HSA transfer was in limbo during most of the drop. Talk about luck.

So, why not? I'm almost playing with house money with that luck. Decided on Friday to put 1/3 of my HSA into the 500 index. Beginner's luck again with yesterday's run up, but who knows how this will all come out in the end.

 

[karen1972]

I'd love to buy in but everything in me says this just doesn't seem right. Yes the govt handed out all kinds of money but to me its a short lived rally and we are looking at a W

 

[tulak]

I'd love to buy in but everything in me says this just doesn't seem right. Yes the govt handed out all kinds of money but to me its a short lived rally and we are looking at a W

+1

Wait until we see unemployment numbers and earnings for this quarter.

 

[Toocold]

I bought at 5%, 10%, 20% and 30%. I still am waiting until 40% or May for the next tranche. I dont think it will get there.

 

[Dash man]

I must say, I enjoy these days with six figure portfolio gains far more than the six figure down days!
I think there is a good chance we haven’t seen the bottom for the last time, but I don’t think it’ll go too much lower than it has.
All I did today was put in a limit order for some WMT at 107. We’ll see what happens. Tomorrow may see a drop if it’s a short term profit taking kind of day.

 

[nwsteve]

With CD rates in the tank, finding it hard to pass up ST muni A rated with yields 2.5-3.0 for taxable account. Sure not triple A, but nearly double the yield ?

 

[COcheesehead]

With CD rates in the tank, finding it hard to pass up ST muni A rated with yields 2.5-3.0 for taxable account. Sure not triple A, but nearly double the yield ?

Earlier in the week they were over 4%. Those deals went fast.

 

[Mr._Graybeard]

Earlier in the week they were over 4%. Those deals went fast.

Yeah, the window has all but closed, I'm afraid.

 

[Fermion]

I thought very seriously about buying a couple thousand shares of CCL as a gamble when it was $8....dang and today it is $18.

Shoulda woulda coulda.

 

[Toocold]

Would anybody like to guess whether the market will be a V or a W?

 

[atmsmshr]

I am still calling the long U.

Recent bounce is just that - a bounce.

 

[Freedom56]

Investing in fixed income for the past 30 years has taught me that the time to buy is when there is a panic. The liquidations that was going on in fixed during the past two weeks dwarfs what happened in 2013 and was close to what happened in 2008/2009. What we witnessed is what happens when investors and funds are over-leveraged - they sell everything to raise cash. I saw bid/ask spreads of 15-20% on high quality investment grade corporate bonds. The Fed needed to step in and put a bid under the bond market as 8.9% or more YTM on 5 year investment grade corporate notes was far too high relative to near zero rates for treasuries. If they didn't act, program trading would have pulverized the equity markets.

 

[nwsteve]

Earlier in the week they were over 4%. Those deals went fast.

Now you see it, now you don't. I just became really aware of how extreme the mayhem was in the bond market earlier this week. Since I did not have any free cash in my tax deferred, I did not really explore. Finally light bulb went on that I had maturing CDs that I could move back from Ally and grab some muni in my taxable account.
The Fido bond trader told me that he still had clients cashing T-bills that were 2 weeks from maturing. Pretty much all from CV-19 etc fear,.

 

[Born2Fish]

Still buying SPY (well, my 401k's SP500 fund). A little at a time.

Once my individual stock holdings in my IRA settle out I will start selling them and moving into ETFs.

Not in a huge hurry but have noticed that individual stocks can wreak havoc (high anxiety) during these events. Lesson learned from MLP, REIT stocks.

 

[Clone]

Well, tomorrow is the day I pull the trigger on getting back with another big chunk. Still have a fair amount in Bond funds, but need a few more days so I don't trigger the 'Roundtrip' warnings.