So, almost at yesterday's low, 40 and a tiny fraction, I doubled up on RMBS...feeling almost like I stole it!
Chaz it looks like you did get a steal.
I also like your house cleaning. IMHO LU has no business in anybody's portfolio when you have ITWO, NTAP, SEBL, Q, et al and yes, the Bus to choose from.
No margin Chaz?
Actually, with my back to back experience with GSTRF (total disaster, but I can definitely use the tax losses - so the loss really wasn't as nasty as it seems) and then RMBS fiasco, my margin strategy was put to the extremest of test under conditions I could not have imagined. It held, it held! But barely. I ended up shipping a few grand more in cash just to make sure she stayed a float and selling 5% of RMBS and RBAK to put the sails back up.
Moral: There is no true safety in margin if my experience of the last two days can happen. However, margin is not suicidal either if you keep a hell of a lot of room for the events that struck me the last two days. In the end, after the Samsung news I ended up 7% to my RMBS position using the cash I added yesterday (although I did swear to my wife that it would remain in cash - well, I left some weaseling room in my language;)....yes, yes, I should run for office, I seem to have the weasel language skills).
But just thought I'd share my margin experience. Still have had no margin calls. But the example of the last two days demonstrates that anything can happen in this market. So if you use margin know what your doing and do not be cocky.
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