DD Support Board and Research Team

[DragonBear]

I you were to, as a retiree, cycle out of low rate muni and treasuries, considering tax rates, into equity, in this environment, cash and wait for a pullback or dividend equities like Verizon or Pfizer?

A first play for those interested in low risk divys is to figure out which companies will take advantage of being able to repatriate offshore profits, back to the US at the special tax rate. The last time it was done Microsoft unloaded one hell of a huge divy onto its SHs. It will be repeated for a slew of companies overseas cash rich. Very low risk. Med+ returns.

Long term are the Chinese ADRs (large cap &growing). Risks include, Korean war, US-China trade war, and Chinese gov intervention into market liquidity. Bumpy risks that come&go. High return over long term, but not short term.

The one foreign investment which will get a lot of excitement in 2018, and IMO should be avoided like the plague is the Saudi Armaco IPO, and whatever else comes out of it. Any Tute fund biting on the crap, should also be avoided. High divy return, but ugly.

Cycle into sectors likely to benefit from inflation. Paying close attention to the Fed. High risk, high return potential.

If covered with feathers, and one already has a fully funded IRA, how can one lose in defense sector stocks? Where PPS is on a roll, and the divys good. Mondaine general munitions, and bleeding edge missile-jet technology. Only problem most are very expensive already.

Then again, for most retirees with an ave IRA of $160K all of this doesn't matter. As they get bombarded by Email ads from their banks participating in the muni market, or even worthless crap like CDs. Stick it into a fund, and consider a 10% return wonderful as a false annuity. Probably can live high on the hog in California with $16K per yr. LOL