Upcoming summer

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Upcoming summer

Post by cswift01 »

Dear all,

I'm curious to know your market strategies for the summer time.

I haven't made up my mind as of yet, however, I'm looking at maybe placing a good amount of my investments in a money market account during the summer. I had first thought about a 3 month CD or some treasury bills, but given the upcoming increase(s) in the rate I am not too excited about those options.

The volatility I'm sure will continue throughout the summer and I don't expect the market to do much after May 2 when most dailies leave the market. I also don't expect much to transpire before the middle of October.

What are you guys going to do?

Best,

Me

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rcozby
Posts: 341
Joined: Mon Aug 11, 2014 12:14 pm

Re: Upcoming summer

Post by rcozby »

I'm selling in May and going away. Mainly due to anticipated political risk. Summer is when we'll realize that the dems are coming back to power, so investors will freak.

mindofmush
Posts: 353
Joined: Mon Jul 02, 2012 1:38 pm

Re: Upcoming summer

Post by mindofmush »

cswift01 wrote:Dear all,
I haven't made up my mind as of yet, however, I'm looking at maybe placing a good amount of my investments in a money market account during the summer. I had first thought about a 3 month CD or some treasury bills, but given the upcoming increase(s) in the rate I am not too excited about those options.
Me
Ally has the best rate for 3-mo CDs at 1.5%APY which will give you about .1% per month. That's better than your mattress but still less than inflation. T-bills are slightly better. (A rise in the Fed interest rate will NOT affect the yield of YOUR T-bill unless you try to sell it before maturity. A rise in the Fed rate DOES adversely affect bond FUNDs because the fund manager does sell their lower rate bonds before maturity.)

But if you hurry, you can get 8-10% yields on T-bills and bonds at Kenya's Central Bank:

https://www.youtube.com/watch?v=iamQOdn9H1U

Remember to get your application in by Thursday 2:00 pm, so you can bid on Monday's T-bills. :lol: :lol: :lol:

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ArrieS
Posts: 1072
Joined: Sun Aug 05, 2012 10:56 am

Re: Upcoming summer

Post by ArrieS »

Or look at Marcus by Goldman Sachs savings account. I opened one and they just raised their interest rate to 1.60% APR. It will raise as rates do and you don't have to worry about locking your money up in a CD or losing interest if you take it out early.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Upcoming summer

Post by cswift01 »

ArrieS wrote:Or look at Marcus by Goldman Sachs savings account. I opened one and they just raised their interest rate to 1.60% APR. It will raise as rates do and you don't have to worry about locking your money up in a CD or losing interest if you take it out early.
I see that the savings account is a high yield account. Does that mean that you could lose your savings?

Thanks,

Me

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ArrieS
Posts: 1072
Joined: Sun Aug 05, 2012 10:56 am

Re: Upcoming summer

Post by ArrieS »

cswift01 wrote:
ArrieS wrote:Or look at Marcus by Goldman Sachs savings account. I opened one and they just raised their interest rate to 1.60% APR. It will raise as rates do and you don't have to worry about locking your money up in a CD or losing interest if you take it out early.
I see that the savings account is a high yield account. Does that mean that you could lose your savings?

Thanks,

Me
No.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar

Jamters
Posts: 55
Joined: Wed Nov 25, 2015 12:48 pm

Re: Upcoming summer

Post by Jamters »

rcozby wrote:I'm selling in May and going away. Mainly due to anticipated political risk. Summer is when we'll realize that the dems are coming back to power, so investors will freak.
I don't think anyone has to wait for summer - Ryan already waved the white flag. Trump wanted to build a wall but it seems the stock market hit it head on in January and still hasn't picked up the pieces.

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TopNotch
Posts: 244
Joined: Mon Apr 15, 2013 12:38 pm

Re: Upcoming summer

Post by TopNotch »

If I were sitting on cash, I would wait until the AT&T - Time Warner merger trial is over and the outcome is known. Markets hate uncertainty.

There should be a decision by the end of May. Right now, AT&T is at about a 5.69% yield, with a quarterly dividend of $0.50 per share.

You could see whether AT&T shares take off or tank and once you have an idea where the stock is headed, make a purchase at a good entry point. Of course, there is some risk.

This makes up about 8% of my portfolio and is a good dividend payer.
David Tepper - "There is a time to make money and a time to not lose money."

Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Upcoming summer

Post by cswift01 »

TopNotch wrote:If I were sitting on cash, I would wait until the AT&T - Time Warner merger trial is over and the outcome is known. Markets hate uncertainty.

There should be a decision by the end of May. Right now, AT&T is at about a 5.69% yield, with a quarterly dividend of $0.50 per share.

You could see whether AT&T shares take off or tank and once you have an idea where the stock is headed, make a purchase at a good entry point. Of course, there is some risk.

This makes up about 8% of my portfolio and is a good dividend payer.
I like AT&T, but you're taking a risk in waiting (just like in buying now). If the merger goes through, then if you can't purchase stock after hours (or before hours) then you will miss the increase.

Best,

Me

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