by Anura Guruge
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The MARKET is very important to me. I live off the market; not very well but I muddle and struggle through. So, I spend a LOT of time following, tracking and analyzing the market.
Just as I didn’t stop smiling during the October 2013 Government Shutdown, for which I still thank the Republicans with all my heart, I haven’t stopped smiling all day today.
I wanted the Fed to START tapering. This ‘to taper or not to taper’ was killing the market. Lets get it done. It was baked in anyway per my estimates — and I was right.
I sat down, actually lay down, at 1:57 to watch the Fed announcement.
To ME it was the Goldilocks scenario. Not too much, not too little and plenty of dovish cooing that interest rates will be near 0% for the remainder of MY lifetime.
Perfect. Thank YOU, Ben. You are THE MAN. I will miss you. You are not good enough to wipe clean Paul Volcker’s shoes but you did good.
I watched the Dow go down to begin with KNOWING that that would not last.
Reason and common sense prevailed. Perfect.
Now you would THINK that I, a person who lives off the market, would want higher rates. Not really. I have, after a lot of blood, sweat and tears, have worked out a decent income producing portfolio through a synergistic mix of junk bonds (read BJBHX) and ETFs. I made 6% on my fixed income while maintaining my initial principle more or less intact (the more or less having to do with the hit it takes, once a month, when the dividends are paid out). Last week, on e-mail, I was talking to a fixed income PROFESSIONAL who charges people for managing their fixed income. She agreed that she can’t even come close to 6% — without eating into capital. All the hours I spend doing research and massaging data using Excel does pay off.
I do, at some point, want to share some of my investment finds with you all. I have already told you, multiple times, about BJBHX.
I have a gem of a stock market mutual fund in my stock portfolio. I found it 4 years ago after years of research. I sometimes feel guilty about it. It is an obscure, $75 per transaction up front, fund. I only found it because I can expend tons of computer resources into crunching data. This mutual is good. Very good. But, I am afraid to publicize it because it might take a hit if it gets too big.
Thank YOU, Fed. Thank YOU, Ben. Thank you for what you have done. Now please go away and let Janet come in and take us to new heights.