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I'm Going on Hiatus

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May 18, 2012 – Comments (10)

I have decided that for my own mental health, I need to take a break from this totally irrational, "schitzo", "EuroPanic" market and let my brain rest.

Few, if any price movements have anything to do with what is happening with the companies themselves, but is moving on low volume (which makes it easy to move share prices up, or more likely down), in and out trading, hedge funds and ETFs manuvering for a $0.0001 advantage over the other hedge funds and ETF's, good news, bad news, no news at all, internet articles, blogs, TV "pundificators",etc, etc.,etc.

There is no reason to do any analysis or logical reasoning, because it doesn't mean a thing right now.

Bought instead of sold in May, but going to go away, anyway.

Time will tell if I made good choices or not.

Will look in from time to time, but not going to do anything else for awhile.

Need to get back to a more optomistic, upbeat, healthy outlook on life and leave this toxicity behind.

Good luck, and have fun if you decide to continue playing.    

10 Comments – Post Your Own

#1) On May 18, 2012 at 4:13 PM, irishred1 (< 20) wrote:

wish ya all the best teacherman- enjoy the vacation

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#2) On May 18, 2012 at 4:27 PM, chk999 (99.97) wrote:

Enjoy the vacation!

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#3) On May 18, 2012 at 7:55 PM, awallejr (75.87) wrote:

Just a point of reality.  Last year if you bought the DOW index on January 1st and sold it on December 31st you made %5.  Sure beat Tbills.  So despite all the wild volatility, you would have made a respectable profit.

Unless you are a trader simply don't watch the market everyday.  If you do you become a "prisoner" to it.  This is why I stick with yield.  "Paper valuations" only matter I guess when I want to buy more which I do every single month.  Every quarter my holdings generate higher income with divy increases.

The market was simply due for a correction.  I suspect an 8-10% one so we still have a little more to go down.  Ignore the pundits giving you minute by minute reasons, they simply don't know.

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#4) On May 19, 2012 at 1:03 PM, alstry (36.57) wrote:

What took you so long to figure it out?

Welcome to the www.udderworld.com

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#5) On May 20, 2012 at 8:19 PM, amassafortune (29.71) wrote:

kirkydu's "Shake, shake, shake" post is one of my favorites. There's been a whole lotta skakin goin on in May.

One common opinion is that Bernanke needs the cover of a weak market for a QE3 move (though he'll not call it quantitative easing again). Obama needs a rising market within a few months to help win votes. The Republicans will want a nice market uptrend after their convention, but they may also accept volatility as the debt ceiling reappears in September or October to highlight Obama's budget.

In any case, the current move down could go as deep as 15% which would be about 1,207. 

I do get Teacherman's point. Unprecedented printing and debt have taken down some great countries throughout history, and it appears Bernanke has no other politically acceptable choice. We'll not hear "austerity" spoken by a serious political contender in the U.S., but it is tough for the little guy to know what to do. Buy and hold seems like a chump move these days. NASDQ was at 5,000 twelve years ago. Can you imagine being long and strong Cisco and Yahoo for a good part of the past decade?

2008 woke me up. I was only a great investor because I caught the bulk of an historic uptrend from 1983-2008. I'll be buying if there's a point of recognition downdraft next week. I'll sell during the rebound a few weeks later. I do have core dividend payers that are held as long as the dividend remains steady. I hold a larger cash portion than I used to. 

Individuals should dump debt before playing the market. It's one of the few ways to put capital where you have a known payback and the little guy can win. Like the market, banking and credit is a big boy's playground. Own outright everything you truly need. 

Low debt will give you more courage to buy during panic selling and lock in gains when all the pundits are screaming DOW 20K.

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#6) On May 20, 2012 at 8:50 PM, portefeuille (99.66) wrote:

when all the pundits are screaming DOW 20K

or better yet when the Dow Jones index is at 20k. It should be in around 5 years ...

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#7) On May 21, 2012 at 1:07 AM, awallejr (75.87) wrote:

I dunno I think it will be sooner than 5 years. Finally Greece might leave the Euro and we won't have to talk about them anymore.  Country to Country shorting is NOT the same thing as stock to stock shorting.

You have a chance to buy good companies at cheap prices.  Either pull the trigger or cower.  The choice is yours.

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#8) On May 21, 2012 at 2:56 AM, Tarek307 (< 20) wrote:

i feel the same way, this month i have been mentally, emotionally, physically devastated trying to figure out this market! 

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#9) On May 21, 2012 at 4:00 AM, rainmon (< 20) wrote:

I have been devestated by Apple stock this month, I am still reeling, out Thursday at $537 with huge losses on 200 shares. I need to be invested in something but cannot take another 7% cut off my net worth every again like this. So now I guess will look at buying ETF's or something like Exxon, Verizon, Starbucks, YUM and maybe even NLY. I have no income or job so really need to make at least 1200 to 1500 a month. I have been doing covered calls for years and never seen anything like this before... 

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#10) On May 23, 2012 at 8:45 PM, awallejr (75.87) wrote:

Well rainmon you could just buy PSEC which pays monthly dividends.  If you go all in you get close to $1,000.  But then again you will live and die daily watching that one stock.  Could spread it around to a couple MLPS. Personally I own MMLP, BWP, BBEP and PVR.  Pain come tax time with the Schedule Ks that always come end of March but turbotax makes it easy.

But if volatility is stressing the heck out of you, bonds or annuities really would be the route for you but you wouldn't generate what you need monthly.

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