MTWTF — Monday, Tuesday, Wednesday, Thursday, Friday. But somehow WTF feels appropriate. That’s where crazy became really crazy.
Monday caught my attention. A big decline. Then Tuesday. Opened low, but finished up.
Thursday. Opens up slightly, then down massively. Then up massively.
Friday. Egads! Up!!
I the midst of the maelstrom I was tossed by the winds. My emotions were tossed as I saw $10K+ daily movements in my portfolio. Fear was palpable. One moment I wanted to place big bets on the upside by buying SPY calls, the next I wanted to buy puts. Logic and emotion duked it out. It seemed like logic was illogical in the face of the forces of financial nature. If logic doesn’t work… then emotion is seductive. But emotion is fickle pitting fear against greed in the classic tale of investing.
In the end, I kept my powder dry and didn’t make any large moves. I made two modest moves. 1) I sold half of my BCS shares at a very low $21 and change (roughly break even with my $22 and change purchase plus the dividend I will get Oct 1). 2) I bought to close my covered SPY 130 Dec 31 call.
In retrospect selling BCS looks wrong, and closing the call looks right. These actions were with relative chump change… comprising perhaps a couple percent of my portfolio. And these moves — in my “play money” account — allowed me to leave my other larger investments untouched. And so far that seems to have been a wise move (or non-move!).
This is a big week in investing. The consequences of massive government intervention will likely be debated and studied for years to come. My gut feels uneasy about the whole thing. Yes it saved me some money in the short run, but what will the long-term consequences be? It is, IMO, too early to tell.
If nothing else, this week, and next will be very interesting. Living and participating in history in the making!
All I can say is that at this moment life is good for me. It’s not all about money 🙂 Ideally, I like boring, safe, investments that go up in a smooth and steady manner. But, hey, a little excitement now and again is interesting too. I do love the drama — in moderation.
After a week like this I think it’s about time for a beer. Cheers, Mates!!