I continue to focus on my own investing discipline as it applies to my Covestor models (MLP, Taxable Income, Activism Profile , Long/Short Opportunistic, Core). I attempt to achieve my exposure to risk assets with Closed-End Funds and other securities where I believe there are catalysts to achieve relative price-outperformance.
Since my last broad commentary published October 1st, I’ve remained bullish through a lot of “noise.” Perhaps more relevant, I’ve remained focused on less-followed securities, largely Closed End Funds. That’s a bigger priority for me than anticipating moves in single stocks like Apple (AAPL) or Facebook (FB). I do not anticipate that my bread will get buttered focusing on stocks that get the attention of the talking heads. I believe trying to outsmart the broad market is often a fool’s game.
While the financial sentiment being reported by journalists has improved significantly, the longer term economic backdrop continues to lack attractive liquid alternatives to risk assets. In my opinion,there may be market upside for investors who embrace equities.
Trying to trade in and out of the broad market is not something I seek to do. Market timing is for folks who think they are smarter than the market. I do tend to be less greedy when I sense others are becoming more so. But temptation to broadly take profits here would be more emotionally fulfilling than wise, I think. Emotional fulfillment rarely serves ones investing discipline. I always seek to separate emotions from investing decisions. I prefer and anticipate a rising tide that would lift most ships, my vessel included. Still, I’m going to measure myself on how my vessel performs relative to other ships.
Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures. For information about Covestor and its services, go to http://covestor.com or contact Covestor Client Services at (866) 825-3005, x703.Why I'm staying with closed end funds in this market appeared first on Smarter Investing.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV