I don't think of my picks as long term. I more think of them as prostitutes and I'm their pimp daddy. It seems in this market that it is good to have a stable of both long and shorts. When the buyers get excited I can send one of my ho's to please them. occasionally, I will borrow a ho from another pimp and when he realizes he wants to get rid of her, I will let him, but at a discount. Sorry, I was never any good at analogies.
Here is at least my perspective on the market right now as opposed to 99/00. One morning RMBS was getting some action g so I bought at 90 sold at 95 and was pissed that it went to 129 later that day. But now, when I take a long and I hold stuff overnight it is something that if we get anther attack or fraud or whatever else goes wrong is not going to kill me, and I can stomach for a while. When I get a little gain I sell out. Then I have been hedging things with shorts. I was never a very good short seller, I get squeezed like a piggy, but with the hedges it seems to work. Then I tend to marry my gains and losses. So this morning I closed out some shorts and offset some losses on things that were not working.
As for the junk bonds, they are like my slum property. Not a huge investment, but I figure when the economy turns people will start paying for risk and the spreads will close. In the meantime most are paying 10% or so in dividends. The other nice thing about bonds is they lead the market a bit. So the selloff in junk gave me a clue to start raising some cash over the past few weeks.
Just my thoughts.
Here is at least my perspective on the market right now as opposed to 99/00. One morning RMBS was getting some action g so I bought at 90 sold at 95 and was pissed that it went to 129 later that day. But now, when I take a long and I hold stuff overnight it is something that if we get anther attack or fraud or whatever else goes wrong is not going to kill me, and I can stomach for a while. When I get a little gain I sell out. Then I have been hedging things with shorts. I was never a very good short seller, I get squeezed like a piggy, but with the hedges it seems to work. Then I tend to marry my gains and losses. So this morning I closed out some shorts and offset some losses on things that were not working.
As for the junk bonds, they are like my slum property. Not a huge investment, but I figure when the economy turns people will start paying for risk and the spreads will close. In the meantime most are paying 10% or so in dividends. The other nice thing about bonds is they lead the market a bit. So the selloff in junk gave me a clue to start raising some cash over the past few weeks.
Just my thoughts.
