This week Doug Fabian’s weekly podcast (http://www.fabianwealth.com/weekly-broadcast/radio/) featured several opinions on the future. 1. We are in probably in at least a 10% market correction. Without the Friday up day this would have been a down week. 2. With 93 million adults not in the work force and receiving government benefits, taxes have to go up and by 2017 the deficit starts to explode. 3. Taxes will be going up based on the Simpson-Bowles “fix the debt plan” published in 2013. One of the items mentioned was that I’ve not heard before is that benefits are taken away based on assets. 1.2 Trillion dollars in tax deductions (real estate taxes, mortgage interest deductions, etc.) have to be cut. Income taxes, gas taxes, social security taxes, every tax will be going up. Politicians do not care what you were told or promised – their only goal is to get reelected and they cannot get relected by cutting benefits to the 50% of the population receiving them. Also remember only 50% of the US pay income taxes.
IBD TBP’s Current Outlook is “Market in correction” – not a time to invest. In a correction, the proper strategy is to quickly get off margin, raise cash, cut losses fast in your poor performers and let go of other stocks that threaten to wipe away recent gains.
My current investments:
SPharmaceuticals has a price of 23.51, a sell price 22.57, a rank of 03, and is a Hold.
SHealthCare has a price of 234.74 a sell price 229.81, a rank of 05, and is a Hold.
SElectronics has a price of 83.97, a sell price 80.17, a rank of 15, and is a Hold.
SRetailing has a price of 95.06, a sell price 91.67, a rank of 11, and is a Hold.
ChinaRegion has a price of 37.52, a sell price 36.21, a rank of 01, and is a Hold.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes:
IRA #1 – 100% invested
IRA #2 – 100% invested