Summary - August 2011 : Honey I shrunk the savings
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- Published on Thursday, 01 September 2011 15:31
- Written by eeSirrius
This is by far one of the worst month of my short investing carreer. All the planets were aligned when the United States lost there triple AAA rating shortly after the congress finaly adopted a plan that didn't please the investors at all. Our magic formula portfolio melted more than 9% Compared to the S&P 500 who lost close to 5%. At some point during the month, We were losing more than 15%. You will find the August summary here.
That kind of volatility is just insane. I have to say that some volatility was expected considering the selection criteria (> 50 millions of capitalisation) that we are using to find our companies but that much ???. Before that crazy ride in the abyss, that started with the US debt crisis, I was writing about how much more than the S&P 500 we were making. Well now we are trailing 5%.
If you are retiring soon and your looking for a way to securely make your capital grow, you'll guess that this is not the way to go since you can lose a pretty big chunk of it at any time.
I have to say that the small capitalisation company that were selected are far more volatile. Some would expect that bigger capitalisation companies would have been more stable but I don't have any of those so won't really bother.
Our next selection period for the magic formula investing strategy is end of septembre but Ihave to say that I do not want to put more money at risk in this infernal roller coaster ride. I dont think I will be buying anymore stocks unless there is is a clear strenght signal on the indexes. For me a clear signal would be having the NASDAQ at 3000 points and the Dow jones close to 13 000 points.
Achat du 25ième titre
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- Published on Monday, 23 January 2012 10:44
- Written by eeSirrius
Ce titre s'est beaucoup corrigé et semble donner des signe de force important alors que le marche est au calme plat aujourd'hui. Un revirement en cycle haussier est imminent.
Achat du 24ième titre
- Details
- Published on Monday, 23 January 2012 10:44
- Written by eeSirrius
Ce titre s'est beaucoup corrigé et semble donner des signe de force important alors que le marche est au calme plat aujourd'hui. Un revirement en cycle haussier est imminent. Si tel est le cas, ce titre offre un bon potentiel de rendement.
