Problems with 100% gold investment

Some of you here on the blog may not delve into the Youtube universe. Its as I describe though... nasty at times and emotional. Its why I put a big focus on controlling emotion and psychology.

Gold is an asset class. It has strengths and weaknesses, reasons to own and reasons not to own. I have held it for the Effort Portfolio and will do so again in the future. But its not a magical end-all be-all for your economic woes.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 92 update. Gold and PSEC

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Ok I admit in this video I am talking too softly.

PSEC is going to make a big impact on the Active Accounts monthly income. The question is WHEN do I buy it. I might be able to wait and get a 10% better price looking at the 2012 low. I also have that SPY Put and my thought is we are getting a market pullback.

However, when a company is undervalued is the market going to pull it down? PSEC is already paying a 12% yield, one of if not the highest currently for BDCs. Oh and then there is the fact that their 2012 NII is +50% more then 2011 yet share price has risen only 20%.

The question comes down to... is PSEC something I want to nitpick and risk 10% gain in shareprice and possibly miss out on?



Investing and Trading Account: $7,080.41
Total Return: -3.01%
Est Monthly Income: $12.41

Trading: $3,419.85
Total Return: -6.27%
Stock
     NOK: -8.7%
Options
     SPY 152 May PUT: -30.37%
Cash: $2,834.46

Investing: $3,622.64
Total Return: 0.34%
Stock
     AFL: -5.44%
     HAS: +11.77%
     SPLS: +10.49%
     STX: +4.53%
     PSEC: To be purchased this week
Energy
     WHZ: -11.75%
Gold
     IAU: Sold. Waiting for price action to level off.
Bonds
     BLV: -2.08%
     JNK: -0.85%
     PCY: -3.40%
Cash: $1,282.52

ETF Account: $7,238.15
Total Return: -0.85%
Est Monthly Income: $14.15
US Stock
     SPY: +2.40%
     XLV: +2.87%
     VNQ: +2.09%
International Stock
     EWZ: -3.55%
     PXR: -4.00%
Gold
     IAU: Sold. Waiting for price action to level off.
Bonds
     BLV: -2.00%
     JNK: -1.21%
     PCY: -3.27%
Cash
     Cash: $2,874.96

Permanent Portfolio: $7230.45
Total Return: -0.95%
Est Monthly Withdraw Rate (4% rule): $21.95
Listed by weighting
     SPY: 25.21%
     GLD: 23.27%
     TLT: 24.28%
     Cash: 27.24%



Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Sold rest of IAU

I want no part of what gold has to offer right now. That is a lot of volume today. That tells me its institutional / hedge fund money getting out of gold. I'll wait for the dust to settle before determine if and when I get back in.

Sold the rest @ $15.35.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 91 update

So I made my weekly update video yesterday, posted it, perhaps some of you even received an email that it was put up. Then I removed it after I did some fact checking. Too many things in there were wrong but I wanted to get the numbers up anyways.

Some of you keep an eye on the spreadsheets and might have noticed my gold position were sold off or halved yesterday.  Its my view that the gold story is just about over and for a number of reasons...

1: Every year for about 10-11 years it has made a new yearly high, except for 2012.

2: GLD has grown immensely in market share. Only so many people can come into a financial vehicle for so long before everyone who will be in it are in and the first people in want to start taking profit. This profit taking probably has gone on since 2011 while the last money, "dumb money" comes in. By dumb money I mean the people buying in with 100% of their portfolio trying for it all. Those taking small positions, re-balancing, or using gold for a strategy may have other reasons.

3: Technical analysis: Looking at a multiyear timeframe gold has been rising in a nice channel. That has now broken to the downside. Also, price has followed its 200 day SMA (simple moving average). That is until the past couple weeks until its broken to the downside.

I had wanted to see if Tuesday would bring a slight rise to make up for last Friday but it never came so I lightened my positions...
For Permanent Portfolio: No change. It self corrects price drops through rebalancing. That's the beauty of PP.
For the ETF account: I am selling half the position going from 10% down to 5%.
For the Active account: I sold all of the gold position. With only $350 I cannot be selling in steps. Commissions will kill the account. I'm content with exiting it all because the number 1 thing we have to do, protect our money so we survive to trade another day.

Investing and Trading Account: $7,041.22
Total Return: -2.86%
Est Monthly Income: $12.41 / month

Trading: $3,419.85
Total Return: -6.31%
Stock
     NOK: -3.62%
Options
     SPY 152 May PUT: -30.37%
Cash: $2,784.46

Investing: $3,622.64
Total Return: 0.63%
Stock
     AFL: -6.82%
     HAS: +10.14%
     SPLS: +7.83%
     STX: +13.07%
Energy
     WHZ: -9.34%
Gold
     IAU: Sold
Bonds
     BLV: -2.57%
     JNK: -1.26%
     PCY: -2.98%
Cash: $1,282.52

ETF Account: $7,210.28
Total Return: -0.61%
Est Monthly Income: $14.15
US Stock
     SPY:  +2.59%
     XLV: +2.92%
     VNQ: +1.69%
International Stock
     EWZ: -1.18%
     PXR: -1.06%
Gold
     IAU: -4.51%
Bonds
     BLV: -2.50%
     JNK: -1.62%
     PCY: -2.86%
Cash
     Cash: $2,471.91

Permanent Portfolio: $7,206.10
Total Return: -0.61%
Est Monthly Withdraw Rate (4% rule): $21.88
Listed by weighting
     SPY: 25.34%
     GLD: 23.78%
     TLT: 24.24%
     Cash: 26.64%


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

The importance of consistent deposits

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 90 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Investing and Trading Account: $7,390.46
Total Return: 2.65%
Est Monthly Income: $12.41 / month

Trading: $3,479.00
Total Return: -3.36%
Stock
     NOK: 0.0%
Options
     SPY 152 May PUT: -21.49%
Cash: $2,788.73

Investing: $3,911.46
Total Return: 8.65%
Stock
     AFL: -4.91%
     HAS: +8.26%
     SPLS: +8.08%
     STX: +16.48%
Energy
     WHZ: -2.05%
Gold
     IAU: -0.25%
Bonds
     BLV: -2.33%
     JNK: -1.77%
     PCY: -1.95%
Cash: $1,183.90

ETF Account: $7,183.94
Total Return: -0.22%
Est Monthly Income: $14.15
US Stock
     SPY:  +2.34%
     XLV: +2.87%
     VNQ: +1.22%
International Stock
     EWZ: -1.58%
     PXR: -2.19%
Gold
     IAU: -1.04%
Bonds
     BLV: -2.26%
     JNK: -2.13%
     PCY: -1.83%
Cash
     Cash: $2,065.61

Permanent Portfolio: $7,221.42
Total Return: 0.30%
Est Monthly Withdraw Rate (4% rule): $21.92
Listed by weighting
     SPY: 25.22%
     GLD: 24.61%
     TLT: 24.33%
     Cash: 25.84%

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

4% Retirement Rule

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Why I bought Staples (SPLS)

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

Week 89 update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Investing and Trading Account: $7,136.19

Total Return: -0.19%

Est Monthly Income: $11.48 / month

Trading: $3,472.00

Total Return: -2.2%

1 SPY 152 May PUT: -13.85%

Cash: $2,987

Investing: $3,664.19

Total Return: 1.78%

Stock

     AFL: +0.21%

     HAS: +2.31%

     SPLS: +12.49%

     STX: +10.54%

Energy

     WHZ: +4.4%

Gold

     IAU: -0.25%

Bonds

     BLV: -3.08%

     JNK: -1.12%

     PCY: -2.5%

Cash: $1,190.15

ETF Account: $7,155.49

Total Return: -0.17%

Est Monthly Income: $14.15

US Stock

     SPY:  +1.99%

     XLV: +2.54%

     VNQ: +0.82%

International Stock

     EWZ: 0.42%%

     PXR: 0.34%

Gold

     IAU: -1.04%

Bonds

     BLV: -3.01%

     JNK: -1.48%

     PCY: -2.37%

Cash

     Cash: $2,013.44

Permanent Portfolio: $7,140.16

Total Return: -0.14%

Est Monthly Withdraw Rate (4% rule): $21.68

Listed by weighting

     SPY: 25.42%

     GLD: 24.87%

     TLT: 24.27%

     Cash: 25.43%

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

The case against DRIPing your dividends

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

With everything I talk about investing and trading wise I want to offer both sides. The more options, ideas, and strategies that you have for your own portfolio the better you will become as an investor.

The choice to DRIP or not to DRIP is a good decision to have. What to do with free money coming at you. Neither choice is a bad one that will ruin your account. Its more a question of which will provide more benefit then the other for you.


Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.