At last! I've been wanting to take some profits for the last few days but needed to wait until today because I bought some stock on November 16 when the S&P 500 got down to 1178 and I always wait at least one month to change direction to avoid any excessive trading problems, and because its just a good idea. At the moment the S&P 500 is 1240 (after hours update: it closed at 1242.87), nearly the highest number for the year. Time to take profits. But as I never do anything sudden, I am only moving 1% (as always) of my total portfolio out of stocks and into stable value. Because stocks have been climbing so much in the last 2 or 3 months, this still leaves me slightly over 90% in stocks. This means that if stocks go up even more, I still stand to profit (and will sell some more) and if stocks go down considerably, I've got a cash reserve to use for more buying.
Year-to-date return: 15.6%
First time here?
They say we should buy low and sell high, but almost no one does it. So as my stock holdings crashed in 2008 I thought to myself, what if I tried it? What if I actually buy stocks when they are low and sell them when they are high, instead of just saying one ought to? It may be crazy but that is just the real life experiment unfolding here. In 30 short years we shall know the answer! Here are the results so far.
2010 Rate of Return: 17.0% (S&P 500 was 14.72% Total Return)
2009 Rate of Return: 29.4% (S&P 500 was 26.46% Total Return)
2009 Rate of Return: 29.4% (S&P 500 was 26.46% Total Return)
Thursday, December 16, 2010
Subscribe to:
Post Comments (Atom)
ReplyDeleteNice post, very helpful for us.I will come back here again & again...:)
Also, to know more about...
precious metals investing
read about platinum
the platinum group of precious metal