The Fed and Interest Rates

[Bluerobin]

This afternoon, the Fed announced it is leaving interest rates unchanged. They speculated that rates probably won't rise until the end of 2014.
What does that mean to investors? Previously, they speculated mid 2013, so I was planning on getting rid of my utility stocks as they will be likely going down. Looks like I have a while longer. What sector of dividend stocks do you see as reacting to rate hikes and how far ahead of 2014? I just started getting rid of utility stocks, and will now hold off.

[Deleted]

Blue - You might consider Levering Your Utility stocks, provided you didn't buy them at a really high price.
Meaning instead of selling them, buy bits as they drop. You will increase your Residuals (which is always nice), You will lower cost basis (which is always nice) and later on IF you need a break on Taxes you will have some stuff you can Do a SPECIFIC LOT ASSIGNMENT SALE against (Sell the Higher costing lots to take a loss) which will give you a reportable loss - thus lowering what you Owe the IRS..
Tax Crafting has been around a long time, done right it is Legal (hence the Rules about WASH SALES) and Utility Stocks are some of the Best to use to do this..
I dunno Just a thought.

[Bluerobin]

DI, I am expecting them to go down about 30% when interest rates start going up. I really don't know about buying more - I am living off the dividends. Would different sectors be better? In 2008 I sold many gains and offset against losses, so any gains are not that long standing. I am just not sure where to go. Once rates get up there again, I hope to go mostly cash.

[Trongersoll]

I took today's fed statement to mean the REITs can be held for an extra 2-3 quarters. I was going to my REIT Q4 '13. Now i'll probably wait until Q3 '14 unless there is a future action that warrants a rethink.

[Deleted]

Blue - I am not really sure what to say. I can see where you are coming from. May be a Flip Flop?
IE: You start going to Cash as Rates rise and you see meaningful movement down in Utilities, then as Utilities Near lows Go back in at the much nicer prices, which would allow you to have more shares, thus more Income.

[Bluerobin]

DI, we sort of think alike. Sooner or later, I am going to lose the ability to play with stocks and have to go all cash. No, I don't really like Mutual funds too much.
Trongersoll, I have been avoiding REITS - my broker has been pushing, but I just can't make the jump.

[Deleted]

on the REITs We can't blame you - the heck with all the other bits and bobbles tied to Evaluation. Look right squarely at the Big one P/E....

Many (If Not most) of the REITS have P/E that would scare even Godzilla.. Like VNO trading @ 43.3x P/E ... Tattoo the word Stupid across my forhead but to Us that is kind of like oh I don't know lighting a stick of dynamite and then just holding on to it....

[Trongersoll]

Blu, As they say, the greater the reward the greater the risk. I like AGNC because the Fanny & Freddy back what they hold. When i bought in Jan. the dividend was about 15%. In addition to that I have an unrealized gain of 21%. Sure this could all go *poof* if something bad happens, like the Fed raises interest rates. But, for the next year at least, i'm going to let it ride.

Oh, an as far as utilities, I'm holding FE. about 6% dividend when i bought in Jan and a 16% Unrealized gain.

Don't ask about my losers, i'd rather not embarrass my self. (j/k not really embarrassed)