Ramblings for a Sunday,
In the 80's many people acumulated great wealth in the stock market. In the 90's many people also acumulated great wealth. The difference is, some of the 80's people went to jail and those that didn't were insiders and market professionals who epitomized the book title "where are the customers' yachts?" In the 90's and hopefully the 00's things have changed, now it's the person next door. I was at a Christmas party and the talk turned to the market and the buzz in the room was someone in our group had made a million in December. I was interested in talking to that person until I realized they were talking about me.
What to do with the wealth? The SI threads are about creating wealth but what to do after is a puzzle. On the one hand we can continue the course that brought us here and the other tells us to protect the portfolio. Protection may mean moving a big chunk of assets into CD's (now @ 6.76%) Pretty boring when you think about it but when you think about the market risk and volatility and the prospects of maybe going back to a day job it feels pretty good. Treasuries aren't any better because the interest rate volatility may erode your cost, REIT's track the rate also. If you have enough, 6.75% is plenty. Voltaire talks about writing covered calls and that interests me but I must confess my market experience is long and short common so I am trying to follow the conversation as I read a book about options. I miss the volatility, those days of $150,000 gains are calling me. The hot sector is biotech and the Naz is on fire. I have been trading the Q's and positiong BBH the biotech tracking stock from Merrill Lynch. The Q's are great because the naz indes leads QQQ most of the time. BBH has doubled since introduction, was anybody watching? The other ML Holdr's PPH, HHH, TTH are skunks but if those sectors recover it's a pretty good place to put some conservative bucks.
Anybody have any ideas for conservative investments?
cdaisey@protect-the-assets.com |
