Just a real short post today on what I've been doing during this whipsaw week on the market.
I did buy a couple stocks for trade. First Majestic and Sandstorm Gold. I have always wanted to own them. These again are short term trades and stocks to not fall in love with. Watch them carefully.
I have not sold a single stock from my retirement accounts. Yes I'm down significantly but what are the choices. Should I cash in now and buy back later?
Contrary to popular belief I'm not that smart to be able to time the buy and sell with any accuracy.
This too will pass and all these losses will soon turn around. In the meantime the cash flow is still rising. I only wish I wouldn't have deployed my RRSP contribution so early. Oh well that's done.
I have been accumulating some poor person's gold in the form of physical silver.
I have decided I want at least $5K in physical as portfolio insurance against further downturns of 20-30% like we have been experiencing. I did this in early 2000 and paid my townhouse off 5 years later when silver rose to $40 an ounce.
With the world gone mad I just wanted to do something different for a change.
Would you sell your house and buy stocks? Tempting isn't it.
This is going to become known as the buying opportunity of a lifetime, I'm sure. Everything asset wise is cheap.
Silver Buys
Besides buying a couple stocks this week I purchased the following;
75 Silver Maples
6 X 10 oz. Bars
5 X Silver Rounds
6 X 10 oz. Bars
5 X Silver Rounds
$100 Assorted Junk Silver (Dollars, Halves, Quarters and Dimes)
This is not for everyone and I get that. Instead of checking on my portfolio or sweating in front of the TV watching BNN I just decided to jump back into silver.
Good move? Time will tell but by historical ratios silver is cheap. It got up as high as 123-1.
You could buy 123 ounces of silver for the price of 1 ounce of gold.
You want to sell or convert your silver to gold when that ratio comes down.
Just what I've done and by no means what I think anyone else should do.
This is not coin collecting.
What do you think. Thumbs up or down on this strategy of spending a portion of your portfolio on physical silver? In my case $5K.
I think this crisis will test many companies and individuals, but I'm just planning to hold tight. If I had funds to invest I'd be buying stocks I always thought were always too expensive.
ReplyDeleteIt's a very small percentage of my PF. I did buy some TD, CIBC stocks in the last couple weeks. Holding everything, sitting back and clipping the coupon. All the best Henry!
DeleteYou asked what the choices are. if you have 100 RY for example and you are comfortable that the market is going down buy a RY put option and sell at the bottom then use the proceeds to add more RY. lower cost basis... Yea my vision is 20/20 in hindsight I knew it was coming and I didnt execute so it has to be a thought out playbook that you can do. dont have to catch the top or bottom just the major thrust down.
ReplyDeleteAlways good to have a strategy no matter what it is. As long as you're comfortable with puts and calls and operating through a margin account. I'm not there yet but warming to the idea with interest rates so low. Thanks for stopping by.
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