Used the recent market turmoil to close my two short positions on the S&P. Realized Annualized returns of 97.8% and 100.4% on the two positions. However, my long positions continues to bleed in the market.
Also, added a modest amount to the Bank of America TARP warrants. Impact due to the addition was less than 0.5% of portfolio. Sitting on over 70%+ cash on the portfolio.
The recent news is that S&P is planning to cut the AAA rating. link. Who the f cares what S&P and Moody’s thinks anymore…. Everyone with two cents worth of brain knows that US cannot be AAA if there are doubts about its ability to make interest payments.
Markets are starting to get a point where I am getting really interested in the valuations of some of the companies. Attractive entry points are available for Wal-Mart and Johnson and Johnson.. More misery for my long portfolio also means attractive entry points for others.
It is all about discipline in investing and patience at this point!
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