Birchtree's Account Talk

If you are fortunate enough to be dollar cost averaging into the S fund or reinvesting dividends into small caps - you are in the sweet spot. Enjoy the new death cross because it means nothing - just take opportunity of better pricing. I have 60 dividends due in October but I think we will ramp up strongly and still get some golden prices. I simply enjoy seeing my income stream grow on a monthly basis. Snort.
 
I[ve got 33 more dividends to reinvest in the next 5 trading days - let the pain continue. Sorry about that but I want these lower prices the small caps are providing. This month has been a painful small blessing for my income stream. I some how think that today may have been the small cap bottom and I can only accept the inevitable - the bull will stampede faster than the Russians pulling out of Ukraine.
 
I happened to notice that the impish Mike Brown roadside memorial was in flames - it actually looks better in flames. I bet my uncle Roy had something to do with that.
 
"The current series of deals also increases the likelihood other transactions will follow. Year to date, global M&A volume is $2.6 trillion, up 43% from the same period last year, according to Dealogic, and the most since 2007." I got many wall flowers waiting to be adopted and find another loving home.
 
I wanted some weakness for September - request granted. Liz Ann Sonders says, "the stock market has performed twice as well during dollar bull markets than during dollar bear markets." And another quote - "Interest rates moving higher don't concern me because it will be the result of an improving economy. I'm confident that the stock market will bear that, because the trade-off will be higher earnings." So I'll take the September pain and enjoy better pricing and come October we'll be at lower levels with golden pricing for my dividends. How about another quote - "Investors are feeling more optimistic than they have in years but remain concerned about stagnant income, a survey conducted by Wells Fargo & Co. The Optimism Index jumped to 46 in the third quarter, its highest level in seven years, with much of the gaines stemming from investors' heightened optimism about economic growth and labor market. However, six in 10 of those surveyed said they are doing no better financially than they were five years ago, signaling limited progress during the U.S. economy's gradual recover." Buy stocks now for the next quarter and 2015.
 
C'mon you freaky bears hammer the market down like a fine piece of silver. We are no where close to the 200 day moving average at 1860 - so I'll take the pain and make my gains in October. I doubt we'll even take out 1900 - no fear here. No pain means no gains. I took a hit of -$343K in July and a come back of +$309K in August - I expect the same pattern to apply in October.
 
I think it is going to be a very, very long time before we see the 200 day moving average again - currently at 1860 but slowly moving up.
 
"Growth has exceeded 3.5% for three of the past four quarters. If expansion greater than 3% materializes for the third quarter, that would mark the strongest stretch of economic growth since 2004 to 2005, the height of the last decades's expansion." I don't think there is anything like a cyclical bear on the horizon.
 
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