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Retirefund
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Long a buy and hold investor, I now believe that buy and hold has to be re-evaluated in a world of ever increasing, instant information and huge gyrations in markets all over the world. A value investor at heart, I anchor my portfolio with conservative funds and blue chip dividend stocks, but... More
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Retirefund
  • Taking profit is never wrong, especially as macro shadows begin to block out the sun. 0 comments
    Apr 28, 2011 3:30 PM | about stocks: SU, CVE, TD, BMO, LIT, TLTHF.PK, RDNAF.PK, RY, MER, CIT, IBM, BA, BAC, SNE, BNK, POT, MA, V, VIA, MS, MFT, M, MCA, MSFT, AA, AAP, AAPL, RIMM, MCD, FED
    Sell in May and go away may be good advice this year!
     
    As I have said before, it is never wrong to take profit. While no one can time the market (and I certainly am not attempting to do that here) however, taking profit when you are doing well is simply good common sense, especially at a time when macro events may tip the scales against your investment strategy,

    As you already know, I like commodities! I like hard assets and hold gold, silver, lithium, copper etc.  I believe that, in the long run, these are great investments. I am concerned at this time, about the strong head winds which seem to be rising at this time in equity markets, and so, today, I took some good profits off the table and sold off shares.

    I have done this for the past two weeks in fact, taking profit in the following companies:
    TD Bank, Bank of Montreal, Cenovus oil, and Suncor.  I have also taken profit in some junior miners, however I still hold most of that stock as I see junior miners in gold, copper and lithium as great long term holds.  I hold physical gold and silver.

    Earnings season is revealing many blue chip companies have done very well in this highly liquid environment. Selling into such a positive earnings season at this time though, may be safer than not doing so. The next month or two may reveal a drying up of the stimulus money that has been a driver of markets for several years now.

    As the U.S. Debt ceiling argument turns into a political shouting match in Washington, with right wing politicians looking to make things difficult for Obama going into the 2012 election season, they will see no reason to extend that debt ceiling.  If they do not extend the ceiling, or if the play political brinkmanship with the date for that vital argument, then all hell could break loose in the good ol USA, and subsequently in the rest of the worlds economies.


    I know, this is only one of the possible macro events spreading dark shadows over equities in the coming months, but couple that with the rising price of oil, more middle east turmoil, a possible Greek default, a possible Irish default, possible defaults in several U.S. States etc etc, well, I am getting a little nervous.

    I have increase my cash substantially this week and intend on staying that way into summer.

    The old adage sell in May and go away, may actually be prudent in this volitile year.

    Good luck with your retirefund.

    HP

     Related articles
    Themes: t-bld, t-win Stocks: SU, CVE, TD, BMO, LIT, TLTHF.PK, RDNAF.PK, RY, MER, CIT, IBM, BA, BAC, SNE, BNK, POT, MA, V, VIA, MS, MFT, M, MCA, MSFT, AA, AAP, AAPL, RIMM, MCD, FED
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