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cap appreciation vs fixed income


With the current financial environment, there appears to be several articles reflecting the flight from equity to fixed income. In reviewing my moderate allocation portfolio, an online site is suggesting a reduction in equity of 15%
So - I was reading up on PRPFX (not a TRP fund) and someone mentioned a good combo would be to have that along with... PRWCX.
I currently have the usual mix of equity & bond indexes... but just looking at cap appreciation stuff.
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Reply to
ps56k

On Aug 23, 11:25 am, "ps56k" wrote:
prpfx has no yield OR appreciation to speak of... it just seems the equivilant of cash under your mattress. Was a nice safwty net in some earlier crashes, but now how about a preferred stocks fund which appreciates about the same on average (with temp dips) but absolutely firehoses dividends around 8%?
prwcx seems another dead money sp500ish zombie... if you don't mind keeping a finger on the sell trigger, why not put just half the money you intended for prwcx into proven appreciaters like emerging ech and thd? Put the other half into yet more preferred to mellow out risk, and you may still snowball your appreciation.
Ech and thd may be toppy, but you can pick some equivilent. And even before the flash crash I described an auto stop loss strategy that would not fall victim to the flash. I forget how, but a sharp dip triggers not a market sell, but a limit sell or something that doesn't execute without getting a fair price out.
Reply to
dumbstruck

I have about $200k that's been in cash, sitting on the sideline in Ally Bank funds.... waiting... I put the cash there to keep my fingers from buy more stocks :) Currently have a mixture of diversified funds at Fidelity, TRP, and Vanguard, along with my specific stocks at Schwab.
Now - I'd like to force myself into a fund that will retain principal, and appreciate or yield a little more than the MM funds... in up or down world. So have been looking at some new areas like cap appreciation or blended funds like Vanguard Wellesley - VWINX -
Reply to
ps56k

Another good one would be Vanguard Wellington. Both feature blended stock/bond (growth and income). Just remember that we're still in a recession so I would be slow about depleting cash reserves.
While no strategy is good for everybody, IMO putting some money into each of these is a good conservative strategy.
Reply to
HW \"Skip\" Weldon

I looked at both - they appear to have mirror image portfolios..... 65/35 stocks vs bonds I'm already pretty heavy into stock equities across the board.... domestic, intl, sml, large, growth, value... so looking for other safe haven avenues slighty ahead of the current flat line -
Reply to
ps56k

On Aug 24, 2:25 am, "ps56k" wrote:
Your reply seems in total disconnect to my suggestion, and I wonder why preferred stock (a sort of bond/stock hybrid) elicits no comment or interest. Graph their performance over an sp500 graph and see the reduction of risk, the less deep valleys. Then rotate the graph upward to reflect the super sweet dividends... why doesn't pff or the like give the diversity and features you are looking for, especially now?
Reply to
dumbstruck

had not been in that arena - but I'll go take a look and learn some more new avenues for investigating...
Reply to
ps56k

it's too bad that PFF reflects about 90% in financials....
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isn't that how we got into this mess in the first place...
Reply to
ps56k

Another possibility is to put some part of the money into common stock of solid, well-known companies that pay high dividends. One strategy is to focus on companies with a history of gradually rising dividends. That plan provides current income together with exposure to possible capital gains.
Reply to
Don

On Aug 24, 12:50 pm, "ps56k" wrote:
financials....
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Geez, now I am confused. There is a PGF that focuses on financial preferred, so I wonder why PFF would be essentially similar. Yahoo sez PFF is under 5% financial, but that is clearly wrong. Also there is PSK and PGX that doesn't seem retrievable in your posted database.
And I seemed to mix up some graph time periods, so I guess the preferred did not do better than sp500 during the crash. Now they are doing better though, really well in fact.
Reply to
dumbstruck

I wonder if PFF, like so many other mutual funds, needing better yields, and recently chased the financial sector.. or maybe only that sector was offering perferred stocks holdings ?
That's what I found in just about all of my so called diviersified funds - value vs growth vs.... they ALL just about had the same large cap holdings... so they all sank together.
Reply to
ps56k

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