Saturday, February 21, 2009

For GT Blog February 21, 2009

When it comes to the stock market we all want the highest returns with the least amount of risk.

I have found that my best returns occur when I take large positions in a rising stock sector and hold for about 6 to 9 months. When this position is sold the proceeds are “rotated” into a new and different emerging stock sector.

This strategy depends on getting two or three trades right per year – you trade less and spend more time smelling the flowers – stuff like going to sports bars, drinking beer, weekends in Collingwood, the theatre and annoying your neighbours with snow blowers, leaf blowers and those power wash machines.

The next big trade will be to get the timing right on the switch from those hot gold stocks into those cold bank stocks - if I get this right I will be a legend in my own mind

A Switch to Bank Stocks from Gold Stocks – not yet – stay tuned


DoubleS said...

what are the indicators or index levels which would prompt you to rotate into the bank stocks?

chrispycrunch said...

You're playing with fire, entering banks, Bill! Will you be considering the fundamental factors too (libor easing, banks actually lending money, banks not actually going into default) when you make this grand call? said...

Hello DoubleS and CrispyCrunch

The markets are driven by greed and fear and so when investors fear to own a Canadian bank stock that has lost half of its value in 12 months and yields 6% - you need to be there – another factor is the UltraShort Financials ProShares ETF (NYSE-SKF) which may be responsible for the huge losses in the US financials – I explain this in a pending Toronto Star column this week – If they fail to publish I will post here next week.

Bill C