Investors are getting nervous over face-off with North Korea

Posted By on August 10, 2017

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With the tension rising between the U.S. and North Korea over nuclear weapons, the broad financial markets headed lower today for the first time in a while (or so it seemed). The often cited DJIA closed down 204.69 or about 1% while the Nasdaq doubled that move at 2% down.

Even though the tone was set yesterday saw President Trump give warning with a fire and fury” comment, it was today after 33 year old Kim Jong un refused to tone down his threats and planned to fire four missiles toward Guam in mid-August.  Trump reinforced his words with “perhaps I may not have gone far enough.” In any case, investor even with positive momentum from solid corporate earning had the jitters. Hedge fund guru Ray Dalio suggested we should “buy gold on rising political risks.”

I’ve never been confident in buying lowand selling high, but I did add a few more shares of beaten up Ford $F to my long term dividend holdings in hopes to rethink an income stream based retirement portfolio (there was a day back in the 1990s when I was holding a couple 9-3/4% Treasuries thinking about laddering them and having my retirement set! Oh those were the good ol’ days for fixed income.)

Ford_2017-08-10 at 4.31.11 PM

Comments

  • JRM

    Another good buy Mr. Corbett. Would you like to manage my meager retirement portfolio? I can’t stand paying fund manager fees when wondering if they really know what they are doing.

    • https://uploads.disquscdn.com/images/28610ee80b4e9c270084d18acb44a97882c3120fff2cb1bc7bf64c7b1365759f.png Thanks for the confidence boost, but I’m wrong A LOT too.

      Also, with the strong run up this morning (8/14) … I sold half my $F holdings to lock in some short term gains. Nothing earth shattering, but profit is profit.

      • JRM

        You sold Ford? Why and at what price before I buy it?

        • Yes, sold some $F. Since I purchased too many additional shares to feel comfortable holding (at $10.77 and $10.79 on Friday), I felt ok about taking some short term profits on a few thousand shares on Monday morning. (Sold $10.94)

          I’m still planning to hold $F for now, but just didn’t like being that much overweighted. Still looking for Ford to trade back above $11 and be a longterm dividend stock since it currently has a handsome 5.5% annual yield.

Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.