We've got cash at the ready. We just need the herd to swing the pendulum back toward fear. Downright Damien Omen, Exorcist panic and horror would be this gal's preference. Trade the Psychology, Ride the Lightning...ha.
World economies are in the position of relying on government to set things right. May I have some examples of when that has ultimately worked in the past? Politicians are short sighted. Short sightedness put the world economies in the situation we're in. A doctor with broken arms flapping in the wind can't perform surgery on the gasping patient.
When the market heads back south I will be at the ready to sell naked and covered puts below the support levels of Dividend Champions. I will be rolling my existing covered call positions to keep the premiums and dividends pouring in. I love my Double D's! (that's double dividends fellas..). I also love to trade precious metals ETF's with options. I believe we are in the midst of a long term secular bull in precious metals. If you'll search under GDX, GLD and SLV on this blog you'll find several examples of "have your cake and eat it" trades.
On covered calls we will look closely at in the money and at the money strikes first. I'm a believer that we now live in a world where we are witnessing the end of growth. I'll give up capital appreciation for boring double digit income returns.
As for now, I'm licking my lips...and waiting...
Showing posts with label end of growth. Show all posts
Showing posts with label end of growth. Show all posts
Thursday, December 8, 2011
Sunday, November 13, 2011
Futures are up on Italy news
I have to admit it feels a little strange to root for a down market as that scenario sets up the best income investments. I like to buy when others are fearfully selling and sell when others are greedily buying. In other words, I won't enter a new income position when the market is overbought as better opportunities present themselves when the market is oversold.
From a macro view I have to question the herds exuberance. There is going to be new Italian leadership. Since when has any government effectively solved economic problems? Insofar as new leadership I always think The Who had it right with their line: Meet the new boss, Same as the old boss.
We live in a time of great debt, money printing, currency debasement and in my view the end of economic growth. Bottom line: the sheet is going to hit the fan and when it does I want to have lots of cash and what investments I do have are going to be on Dividend Champions and precious metals. Even then I plan to write calls in the money and sell puts out of the money so that when things drop I have a lowered cost basis and increased yields.
In the meantime it looks like this gal will just have to be patient and wait for the herd's exuberance and economic reality to realign. In other words, be afraid...be very afraid.
From a macro view I have to question the herds exuberance. There is going to be new Italian leadership. Since when has any government effectively solved economic problems? Insofar as new leadership I always think The Who had it right with their line: Meet the new boss, Same as the old boss.
We live in a time of great debt, money printing, currency debasement and in my view the end of economic growth. Bottom line: the sheet is going to hit the fan and when it does I want to have lots of cash and what investments I do have are going to be on Dividend Champions and precious metals. Even then I plan to write calls in the money and sell puts out of the money so that when things drop I have a lowered cost basis and increased yields.
In the meantime it looks like this gal will just have to be patient and wait for the herd's exuberance and economic reality to realign. In other words, be afraid...be very afraid.
Subscribe to:
Posts (Atom)