AFTER PARKING MOST OF MY NEST EGG IN VERY CONSERVATIVE INVESTMENT ACCOUNTS THERE WASN'T MUCH TO WRITE ABOUT. TPCI IS BACK WITH SOME THOUGHTS AND IDEAS, OTHER THAN INVESTMENT IDEAS, TO SHARE WITH CANADIAN BOOMERS, RETIREES AND SNOWBIRDS.


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Thursday, June 16, 2011

Strategy, Gut Instinct...Whatever

Back on May 2 the total value of my stuff hit a new all time high. Yup, after recovering from the market meltdowns of 2008 and 2009 I had it all back and then some. What a ride!

In the past, at times like this, I've been sucked in to believing that we're on a roll and there's nowhere to go but up. I did things like cash out GICs to get more money into the market. That's called GREED! On May 2 I made the decision to take money out of the market and watch from the sidelines.  That's called FEAR!

As documented in earlier posts, my switch out didn't actually happen for two more days but switch out I did. On May 4 my Endeavour Fund units sold for $11.012...yesterday $10.22. That same day I bought Bond Fund units for $6.102...yesterday $6.139. I avoided a substantial downside on the Endeavour Fund and enjoyed a small uptick with the Bond Fund. Additionally, the Bond Fund has paid two nice monthly distributions since my May 4 transaction. I just did the math. The Bond Fund units are worth 8.822% more as of yesterday than the Endeavour Fund would be worth if I'd held them. Yup, 8.822% to the upside in what? 41 days! I'll take it every time!

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