The top five holdings of this fund are: Apple Inc (AAPL, 1.59%); Microsoft Corp (MSFT, 1.51%); Amazon.com Inc (AMZN, 1.22%); Facebook Inc A (FB, 0.92%) and JPMorgan Chase & Co (JPM, 0.82%).
Vanguard Balanced Index Inv (VBINX)
From Moneyletter
There has been no shortage of noise recently that has moved the markets temporarily. The budget arguments and continuing resolutions were dramatic (and annoying), but that was finally solved with a bi-partisan agreement.
The Trump tariffs are indicative of the protectionism that the president described in the campaign. Will there be follow-through? Are the percentages a starting point for negotiation, or hard-and-fast? The answers are not known as we go to press, but the market responded on Monday by saying “maybe it’s not as big a deal as we thought.” Fiscal and political distractions will be the pattern for the next few years, at least.
Still, the investment horizon boils down to interest rates versus the economy and profits. Certain industries will suffer as rates rise: housing and construction, and other industries that are debt-heavy for example. Recognizing that, we are moving out of mortgage-backed securities and REITs for the time being and moving into Vanguard Balanced Index (VBINX).
Overall, don’t be swayed by the distractions. Pay attention to the fundamentals. Remember, with profits increasing valuations can stay in check and stock prices can increase… despite gradually increasing interest rates.
Walter Frank, Moneyletter, www.moneyletter.com, 800-890-9670, March 2018