• Ocean Man
    Trimmed BMY at roughly break-even after dividends on the 2.5% up-move today. Moving focus to more beaten-down stocks.
    11/16/12
    Reply (10)
    • Ocean Man: The idea being: be in low beta on the way down, and be in high beta on the way back up. BMY is 0.2 beta, bought when S&P was 1420.
      11/16/12
    • Dr. Kris: What is the beta rationale?
      11/16/12
    • Ocean Man: If you feel like the market is high or toppy, and you still want to be long (rather than cash) in order to not miss a further move up or
      11/16/12
    • Ocean Man: because you want to collect dividends, be in safe low-beta stocks. No need to be in them for the ride back up, if you think the drop's done.
      11/16/12
    • Ocean Man: If played properly, you lose 5% as the market drops 10%, and gain 20% as the market gains back 10%. Easier said than done, but it's a goal.
      11/16/12
    • Dr. Kris: OK, makes sense. But if I felt the market was going to move against my position, I'd rather get out of it altogether. Just my 2 cents.
      11/16/12
    • Ocean Man: The S&P has shed 120 pts (8%), so I'll adjust a portion of my portfolio to bet that this is the level we rally back from. Not an all-in bet.
      11/16/12
    • Dr. Kris: Hope you're right. I rarely have luck calling a bottom or a top.
      11/16/12
    • Ocean Man: Hey Dr. Kris - this was a pretty good bottom call, huh?
      12/12/12
    • Dr. Kris: Boy, you sure can pick 'em!
      12/12/12