tag:blogger.com,1999:blog-2986124651030959736.post4318883784042444896..comments2024-03-28T09:42:38.695-05:00Comments on Stocks, Bonds & Politics: Sold 100 HMA at 9.28/Spain/ Large Cap Valuation Strategy-A New Long Term StrategyTENNINDEPENDENThttp://www.blogger.com/profile/17444227958539559639noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2986124651030959736.post-35623043898069179462010-05-29T21:53:34.209-05:002010-05-29T21:53:34.209-05:00Rick: PCEF was one of those ETFs that had some wil...Rick: PCEF was one of those ETFs that had some wild trading on May 6th, the day of the flash crash. It hit an intraday low of 18.22 and closed at 24.03. A number of closed end funds also had particularly unusual activity also. <br /><br />I also try to look at my total portfolio's beta and how it reacts in both up and down markets. If the S & P 500 falls 8% in a month, I am pleased with a 4% decline in my total portfolio which is close to what I had in May. The CEF component went down more than that but performed better than the market averages. The individual bonds held up very well and probably advanced in May as a group. I know that I am going to have bad months, along with the good so I accept that. I am more interested in how the portfolio reacts during the bad month, bad quarter or even a bad year. I also want a portfolio that has less volatility than the stock market but capable of beating the market on a yearly basis in both up and down markets. In a year like 1999, I will underperform, but otherwise I outperform in up and down years with an eclectic portfolio that is less volatile and in a constant flux. <br /><br />When we move out of this long term secular bear market, anyone who has achieved a 5% annualized return after inflation since 1997 will have done extremely well and will deserve kudos. You will not see many professional mutual fund managers doing that well. <br /><br /> The key is always to preserve capital during these long term bear markets, and to advance it some, and then clean up when the next long term bull arrives. If the past is prologue, a 14% annualized return after inflation is doable in the long term bull market cycle.TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.com