Tuesday, March 16, 2010

This week and Riding the Range...

This is going to be another "fickle" week
on The Street. 

For the next 6 months or so, The Market will be quite unpredictable.
We cannot ignore the fundamentals  (How I hate to watch fundies!...) telling us there will be a major correction in The Market somtime this year. 
So...
     Strategies we're using include leaving profs in Port. Accs. for Buyback shares on a correction.  Also, we've been Dumping Stagnant Stock with Divs Below 6%. 
     As for new Buys, we're not doing much "Holding".  For the first time, we're selling up to half a stake in a stock to take profits of 20%.  We may buy 200 shares and sell 100 when taking profit in the 20% range instead of 40.  Doing the math, this means the Cashback is 80% Break Even.  But it keeps a decent Cash Flow going to add to our Deposits as well as preserving  a position in the company.  Accounting and Disbursement is trickier!  No KISS, here.  Also, one of the Partners is doing a bit of Dividend Capture for us.
And oh yes...
     Speaking of Deposits:  Even with the Trials and Tribulations us Investors are going through, in 5 years we'll be looking back in wonder that we got the shares so cheap.  Does anyone remember putting money into CDs?

If you're bored, go with PIKE and LTHU.

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