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According to market theory, it doesn’t really matter when you buy or sell, so long as you buy cheap and sell … not cheap!
As such, I sold Enterprise Inns (LSE:ETI) yesterday.
It’s 50/50 as to whether the stock will continue to go on up. Yet I was on around 140% profit, and the price, to me, looks to be at a plateau.
I bought a clip of RBS (LSE:RBS) because it looks very cheap to me – banks look to be ‘on the up’ after half a decade of ordure. It’s simply buying a bull trend, really, and banks will of course do well if the ‘non-bad times’ roll.
It feels good to be sat on a 37% profit on what is just over a year of time-weighted investment in a new portfolio, especially as it felt very grim for most of the ride.
Feeling good about your portfolio does not tend to be a good omen, however I can’t help it for now; dips in the index aren’t too bad meanwhile rallies are bringing nice profits. This is how a good portfolio should perform.
The rallies and constrained dips are of course, almost solely down to QE and/or the fund manager’s inability to buy good cheap stocks that don’t correlate with their index hugging techniques.
Thank you, thank you.
Performance has been vertical since June, whereas over the six month period prior, overall portfolio performance sat at roughly 0%.
As always, a bear market makes you feel like an idiot, whilst during a bull you just know you’re a genius.
This is why people don’t like to invest – people hate to be even the slightest bit wrong.
Yet if you can deal with your own frail fallibility, then you can make good returns in the market. The market crushes the “right man” under the boot of reality. The market after all is one dollar, one vote, so fighting it can never work.
