Sage Advice

By | October 4, 2017

Lance Roberts posted an article on SA recently that echos most closely how i am approaching things right now …. https://seekingalpha.com/article/4111553-technically-speaking-80-20-rule-investing

How i have translated the conditions into actions

  • watching for irratic / irrational moves in my watch list and snapping them up if appropriate, e.g., PEGI, BEP, IEMG and EFV
    • Note:  either nonUS or interest paying at decent rate (these are also in 401k or IRA)
  • watching for bumps in 10yr treasury yields and snapping up $5k increments of 10yr investment grade corporates, e.g., Nordstrom and Kroger
  • creating a watch list for preferred stock … investment grade cummulative preferreds, e.g., (eTrade symbols for some new issues), DLR.PR.C, AOP.PR.Q, ECF.PR.A …. DLR.PR.C is my favorite but a bit highly priced @$27.70
  • working short term trades for 1-3% gains (both short and long) … to borrow a baseball analogy, i am VERY defensive at the plate looking for a sacrifice or a single (no homerun) … just want to either get on base or advance the runner – no heros
    • Note: for shorts, i have focused on December Puts … i pay a premium, but i have more time to catch a sequence really bad days
  • trimming or liquidating stocks that just have no rational room to inflate further, e.g., CLX and possibly TJX
  • writing covered calls for stocks that i would not mind losing, e.g., TSCO

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