Investment and Asset Protection Strategies, Political Rants, and General Tomfoolery
I have been investing and trading now for over 20 years. I started in my teens and was lucky enough to have instant success. Not to say every trade was all 'cookies and cream' but the early successes solidified the desire to increase my wealth through investment activities. I have invested in many asset classes, including commerical and residential real estate, commodities, stocks, bonds, options, and private placement. Due to my current international lifestyle, I have chosen to stick with things that don't require a physical presence (ie real estate) and sticking mainly to the equity, bond and commodity markets. If done properly, these markets destroy the concept of the EMT (efficient market theory) and create significant wealth for you and your family. In 2008 my portfolio was down just under 10% (down is bad, but better than almost every money manager that year), in 2009 my portfolio was up just over 100%.

Feel free to comment, disagree, or dispute anything. All non-spam replies will be posted. Happy trading.

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Thursday, March 18, 2010

The market is just a bit overheated for my taste

I would encourage anyone reading this blog to analyze your portfolio and consider taking some money off the table and maybe tighten up your trailing stop losses to protect your profits.

I analyzed our investment partnership fund yesterday and we are up 7.7% YTD compared to the S&P500 - up 2.3%. This is a great return and our portfolio is well hedged, but I am cashing out some positions and closing some option trades for big gains now to lock in some profit.

My instinct tells me that the markets are a bit toppy. I say instinct, but really, the markets are historically high right now with the Wilshire 5000 at about 22x P/E. As a value based investor, this is expensive to me. With such huge gains in our portfolio, I am trimming some holdings and increasing the cash position waiting for a pullback and some good buying opportunities.

I suggest you consider the same. Happy trading.
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