The parabolic move up by equity indexes yesterday was really something to see–our accounts ended up nicely green for the day and who can argue with that fact. I am hopeful that everyone hung in there and caught the ‘ride’ up. I am pretty sure that the folks that are on this website rolled with the market punches and didn’t panic sell.
On the other hand the impetus behind the move was somewhat disturbing. While pausing some of the tariffs was a bit expected in some fashion it appeared to me to be timed to move markets and I am not a fan of these types of actions by anyone (i.e. the President or Fed Chair). Oh well everyone is happy except the short sellers (I assume some got wiped out ) and short sellers don’t normally get too much sympathy.
Seems logical that big market movements will continue for the foreseeable future as the tariff game will takes months to play out and during that time we are going to observe some level of inflation I think and we will see how consumers and businesses react to market changes. I think we’ll see sharp losses as well as gains in the weeks ahead as news buffets markets. Will we see a recession? Inflation? Stagflation?
Today I am looking to buy–something off the ‘hiding place’ list. I’ve watched the list over the last number of days and as I hoped most share prices didn’t move more than a dime or so. 1 exception was the Priority Income Fund 6.625% issues (PRIF-F) which had a range of 20 cents. Another exception was the Hennessy Advisors 4.875% baby bond (HNNAZ) which is traded so thinly that movements occur often. Given the thin trading in these issues hopefully I can execute on my target–we’ll see. I will post when/if I can get an execution.
Okay – went back to my “youngin'” trading days Mon-Weds this week and made a lot of $$$ selling puts on stocks I would not mind owning as things dove into the depths. Yesterday afternoon, I covered half those positions for handsome profits (most 50-65%) rather than letting them age more (most were May and Jun cash-covered puts). Granted, this was a very conservative way to trade not like my old days!
This morning, I went buying back the stuff I sold to re-establish the basic annual yield/cash flows I had before and, lo and behold, I got back in cheaper across the board. I have been able to increase my annual income by a full 10% MORE than I had last week. It’s very rare to time markets like I did this week but, with a great deal of luck, it worked out! No more craziness for me however (till next time?)
All this being said, I am too dang old for this and am just gonna not play anymore this year except for typical minor adjustments as needed. Phew…wow. Gonna open that bottle of 2008 Sea Smoke TEN vineyard pinot noir I’ve been saving for an occasion just like this -tomorrow afternoon on the deck!
Santa Rita Hills, nice!
Last night I was telling my wife that yesterday was the 3rd best day in the history of the stock market. She said when were the other two best days? In 2008 I answered to which she quipped wasn’t that just before everything crashed?
Where is “hiding list” posted
Hi GaryG–sorry should have linked it–it is linked on the homepage at the top.
https://innovativeincomeinvestor.com/hiding-spots/
i bought a few off that list yesterday. Seemed a bit more secure with the market recovering. I still expect a lot of vol so staying with this list makes sense. thanks for posting it Tim
bob–I am counting on it pretty heavy so hope it holds up well.
i was able to snag some xflt-a yesterday that ive been trying to but for a couple of weeks. had a partial fill then and got the rest yesterday