Tuesday, April 2, 2019

Time to Reduce Exposure to American Stocks?

I told my U.S.-based family members to raise between 10% and 20% cash in any and all stock/investment accounts. I personally wouldn't mind if my sister and brother-in-law increased their cash/money market holdings to 30%, but they are young, and their youth makes it hard to suggest a more conservative allocation. (It doesn't help that bonds paying interest in U.S. dollars seem to be fairly valued.) My parents, who don't generally listen to me, told me they're already all in cash. 

I am still holding onto my General Electric (GE) shares, along with various REIT and other preferred shares, but I do not see much value in U.S. equities markets as of April 2, 2019. 
Shiller P/E is one useful metric to consider for overall valuation.
I suppose Kraft Heinz Co. (KHC), which I recently bought, looks cheap, but its debt load is considerable, and I don't have many shares of it. I like a few other individual U.S. stocks besides GE, but I allocated a considerable amount of my holdings to GE at an average of approximately $12.50/share, and I'll wait for a turnaround. I do hold a few international companies, but none I like enough to suggest publicly. If you're reading this post, good luck, and do your own due diligence. I am not an oracle of anywhere when it comes to investing. 

Disclaimer: The information on this site is provided for discussion purposes only. Under no circumstances do any statements here represent a recommendation to buy or sell securities or make any kind of an investment. You are responsible for your own due diligence. To summarize, I do not provide investment advice, nor do I make any claims or promises that any information here will lead to a profit, loss, or any other result. I am not responsible for any harm arising from following anything construed as advice herein. 

Miscellany

1. S&P 500 closed on 2867 on April 2, 2019, the date of this post. 

2. GE stock is around 9.26/share mid-day April 8, 2019. 

3. KHC is around 33.22/share mid-day April 8, 2019. 

Update on November 7, 2019 

1. S&P 500 closed on 3076 on November 6, 2019. 

2. GE stock closed at 11.02 on November 6, 2019. As far as I know, I have sold all my individual shares, but my positions may change at any time. 

3. KHC closed at 33.14/share on November 6, 2019.

As of November 7, 2019, I have a conservative portfolio, but my positions may change at any time. 

Update on February 1, 2020

The recent correction has caused me to deploy some of my cash. I have bought shares of XOM, CVX, PSX, GT, MUR, and various REITs. My positions may change at any time. You are responsible for your due diligence. 

Update on April 28, 2020

Markets declined substantially in 2020 because of the COVID19 pandemic, hitting a recent low on March 23, 2020 but have since retraced most of their losses. Though indices declined between 10 and 20%, REITs and oil companies declined around 40 to 50%--and have yet to fully recover. I continue to hold banks and oil companies, which are still paying dividends. Facebook's Libra digital currency has not made much progress, indicating USA banks are still strong as long as they co-opt or harness blockchain technology. I have not had General Electric (GE) stock for a while now. As always, m
y positions may change at any time. You are responsible for your due diligence. 

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