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re: Federal intrest rate and stock market

Posted on 6/10/15 at 11:12 am to
Posted by Jag_Warrior
Virginia
Member since May 2015
4181 posts
Posted on 6/10/15 at 11:12 am to
quote:

Anyone else pulling most of their money from stocks before the fed rate hike? I'm slowly reducing my securities and will be out before the rates goes up. I'll be sitting on the sideline for a while.


No, but I have rebalanced my investment portfolio (I'm still trading the same wet dogs in another account though). I dumped the remainder of my airline shares over a month ago, lightened up on tech and moved more into financials. That's worked out very well, so far.

KEY has gobbled up Jimmy Yellen's rate hike threats like a fat kid gobbles up ice cream on a hot day - I believe it's up over 10% in the few months that I've had it. I don't own it, but even beleaguered BAC has had a nice run. Those companies whose profits are helped my rising rates like rising rates. I like regionals over money centers though.

In my 401k accounts, which consist mostly of mutual funds, I don't attempt major rebalancing unless I see something major on the horizon. Over time, in more conservative accounts, dollar cost averaging will generally be your friend. But I don't think I'd be trying to dollar cost average my way into REITs or bond funds right now though.
This post was edited on 6/10/15 at 11:13 am
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