Sick of investing?
Are you sick of investing?
The market goes up & down for no appearent reason.
In fact, there seems to be no "reason" behind investing in the market. Why go through such an emotional rollercoaster when you can get about 5% in the 10 year Tresury bonds with no risk? By the way, now that we have 5% T-Bond rate, many will do just that. But I won't.
It's obvious that most people are sick watching the stock prices go down everyday. I get many phone calls and e-mails (please use the comment section in my blog) asking what's going on.
The truth? I dunno.
But I do know this. When people react this way, it is the perfect time to put your wager. While some of you were complaining and selling, I was buying. Guesswhat happened Friday:
RICK +8.4% $6.58
MATK +8.4% $23.79
BTYH +18.68% $1.08
This is one (1) day gains I mind you. You could have made up most of your paper losses with gains you see above in one day (had you bought in). I will admit to one thing you already know. The stocks in our portfolios tend to be more volatile (because they are small & new). But this was done on purpose. I do not like SP500 type stocks right now (potential gains are limited). And our stocks do not move in same cycles as the SP500. By spreading your dollars into several stocks (at least 10 hopefully) you can limit big disasters. I do not want to hear from a guy or gal who owns only 2 of our holdings and is upset because one went down sharply (you basically asked for it).
Bottom line: The stock market may go down further from here or it may have reached a bottom already. No body knows. What I do know is that some stocks look very good at these prices.
All stocks mentioned above will look like a crazy bargain 2 years from now.
Just do it.
P.S: May 18th (Thursday) was the record date for IDWD special dividend. The payout date is June 15th. I hope some of you got into this one. They are going to spin off HLS (Home Land Security) division which sells Biometric security deivces and the 2006 revenue for this division could top 100 million dollars. And they are also going to spin off (through IPO) 995ad.com division as well (this also could top 100 million). As I told you before, IDWD is our highest risk/reward situation...
No guts no glory ...
PPS: Tomorrow for my trading account I will be long RMBS if it stays above $27.6/sh.
The market goes up & down for no appearent reason.
In fact, there seems to be no "reason" behind investing in the market. Why go through such an emotional rollercoaster when you can get about 5% in the 10 year Tresury bonds with no risk? By the way, now that we have 5% T-Bond rate, many will do just that. But I won't.
It's obvious that most people are sick watching the stock prices go down everyday. I get many phone calls and e-mails (please use the comment section in my blog) asking what's going on.
The truth? I dunno.
But I do know this. When people react this way, it is the perfect time to put your wager. While some of you were complaining and selling, I was buying. Guesswhat happened Friday:
RICK +8.4% $6.58
MATK +8.4% $23.79
BTYH +18.68% $1.08
This is one (1) day gains I mind you. You could have made up most of your paper losses with gains you see above in one day (had you bought in). I will admit to one thing you already know. The stocks in our portfolios tend to be more volatile (because they are small & new). But this was done on purpose. I do not like SP500 type stocks right now (potential gains are limited). And our stocks do not move in same cycles as the SP500. By spreading your dollars into several stocks (at least 10 hopefully) you can limit big disasters. I do not want to hear from a guy or gal who owns only 2 of our holdings and is upset because one went down sharply (you basically asked for it).
Bottom line: The stock market may go down further from here or it may have reached a bottom already. No body knows. What I do know is that some stocks look very good at these prices.
All stocks mentioned above will look like a crazy bargain 2 years from now.
Just do it.
P.S: May 18th (Thursday) was the record date for IDWD special dividend. The payout date is June 15th. I hope some of you got into this one. They are going to spin off HLS (Home Land Security) division which sells Biometric security deivces and the 2006 revenue for this division could top 100 million dollars. And they are also going to spin off (through IPO) 995ad.com division as well (this also could top 100 million). As I told you before, IDWD is our highest risk/reward situation...
No guts no glory ...
PPS: Tomorrow for my trading account I will be long RMBS if it stays above $27.6/sh.
posted by Jaewoo | 9:06 PM
5 Comments:
I am very impressed with your and Dr.Ge blogs, and am trying to follow your ideas in investing.
However I buy stocks when they are not only cheap but when they are touching a support level on the chart.
You said you will buy rmbs at 26 sh. Why not 25.01 .
Bought jnpr at 14.64 today because of good long term support on the bigcharts. Also Would you like to comment on housing stocks, I have been shorting them since August 2005 with very good results.
in an effort to build my portfolio to 10 stocks, I missed out on buying BTYH at a super low price. Now it is back to $1.25, but I bought @ $1.52 so I still have a way to go make up for the paper loss
What should I do with FORD? This thing is hitting the $5 floor - now I've lost exactly 50% of my investment here
Dear GMM:
Thank you for your kind words.
As per my last blog, I did not buy RMBS because it failed to cross $27.6 hurdle. It is now a better bargain and I will prusue this at lower rate.
Instead of RMBS I have bought RSAS @ 14.89/sh for my short trade today. Please tune in.
Thanks again for your interest...
Johnny:
You could have made exactly 50% in two days with BTYH. Hind sight is always 20/20. FORD is obviously cheap now but the momentum has to come back. Hold or sell is your choice, but in your case hold. I know that you have a long term perspective in your $.
Jaewoo, Nice site you have here. I see we do agree on some things. Keep up the good work.
http://hipegg.blogspot.com/
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