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  • Writer's picturedreich7

Sometimes There is Nothing to Do!

I believe the US economy is strong.

We've been very cautious at putting new money to work this month, February 2020. With Stocks at all time highs, and bond yields at all time lows, we're not jumping in 100% with new cash, but buying over the next few months. We have about 15% cash on hand should the market(s) reverse, but will put 2/3rds of that to work between now and May.

Our allocations are going into the S&P 500, and 6 other funds or ETFs which have a long track record of outperforming. We are buying some levered ETFs like TECL, but in smaller quantities. Our basic allocation is 80% S&P and 20% into the other funds mentioned.

Fixed Income still has some sweet spots with securities we've owned for close to 10 years that we continue to purchase. I like a couple of Business Development Companies (BDCs) which produce in the 7.00% to 8.40% in income taxable, and on the tax free side we're using long term funds rather than individual securities as their yield is higher than what I can purchase in individual securities. Our cash is in Treasuries yielding about 1.50%

I believe the US economy is strong, so with 80% in the S&P I'd argue we have enough international exposure. Remember when we invest in equities we need a minimum 10 year horizon

Any questions please call me at 561-847-3596

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