Wednesday, October 2, 2013

Pretty well out of the States

Today I dumped almost all my U.S. ETFs. SDY, DTN, DVY, FDL, PEY and PID are gone. I have 100 units of DRW left and a few hundred units of REM -- and that's about it. I also dumped my Chinese holdings that had a strong U.S. connection. PGJ is history.

Almost all the stuff I sold was up nicely since their purchase some years ago. The downside of doing so well on my American investments was that as the values climbed the yields fell. For the most part these investments were all yielding less than four percent. In at least a couple of cases the yield was below three percent.

With the Yanks threatening to renege on their debts, with the American government partially in shut-down, with the DOW still above $15,000, it seemed like a good time to put a big chunk of my portfolio in cash. There was some nice pocket change locked away in those U.S. investments. The sale has left me feeling quite good.

The hard part will be staying on the sidelines until a truly good buy-in opportunity arises. This could take a year but I feel certain that it is in the cards.

My Canadian holdings, plus the few others I still treasure, are returning more than four percent. Some are yielding amounts in the double digits. The income from the remaining equities should keep my books balanced in the short term. My wife and I will not starve in retirement -- at least not for a few years. We now have a nice cushion.

The portfolio is in good shape -- or so I think. I'll sleep well tonight (assuming my arrhythmia doesn't flare up).

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