On the 07Nov14 issue of Consuelo Mack’s Wealthtrack (www.wealthtrack.com) Robert Klienschmidt provided the evidence that the FED will never raise the interest rates. Remember the country was “shut down” twice over cutting the un-passed budget growth by 30B (the senate has not passed a budget in 5+ years). With a debt of 18T, if interest rates increase by 1%, the increase in US interest payments will increase by 180B. If the rates go back to the normal level of ~5% the increase in US interest payments will be more than 700B and thus increase the debt by even more. The FED will not raise the interest rates and bankrupt the US.
In his 14Nov14 podcast Doug Fabian is strongly suggesting investing in China ETFs. He mentioned FXI and ASHR. His logic is since the Chinese market is 70% off the its previous high, it is time for it to go up. Fidelity’s China Region mutual fund was ranked 85 last week and 67 this week. It is improving but has a long way to go to hit the top 20.
Investors Business Daily The Big Pictures’s Current Outlook reports the S&P500 had a distribution day on 04Nov and the Nasdaq had a distribution day on 29Oct and 13Nov. The rate of increase is slowing, but nothing to worry about yet.
IBD TBP’s Current Outlook is “Confirmed Uptrend” – time to invest.
My current investments:
SUtilities has a price of 77.29, a sell price 75.91, a rank of 42, and is a Sell to buy SAirTransportation.
SPharmaceuticals has a price of 21.97, a sell price 21.04, a rank of 12, and is a Hold.
SBiotechnology has a price of 226.33, a sell price 222.25, a rank of 02, and is a Hold.
SHealthCare has a price of 225.84. a sell price 214.81, a rank of 05, and is a Hold.
STransportation has a price of 93.40, a sell price 88.73, a rank 0f 01, and is a Hold.
SAirTransportation has a price of 70.14, a sell price TBD, a rank of 03, and is a Buy.
SAirTransportation is benefitting from the drop in oil prices.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – Sell SUtilities and buy SAirtransportation.
My portfolio market exposure after this weekend’s changes:
IRA #1 – 100% invested
IRA #2 – 100% invested