"There is always a philosophy for lack of courage."—Albert Camus

Friday, April 01, 2005

Puttin' My Cash Out On Da Street

One last item for today:

I had promised to announce here when I returned to Wall Street. As we have discussed here in the past, I move my retirement fund in and out of Diamonds (symbol: DIA) which track the Dow Jones Industrial Average, and I have been sitting on the sidelines with a cash position since December when I sold out at $107.97 a share at the 10,800 level of the index. I have averaged over 18 percent a year return over the last two years (the Diamonds also pay a dividend).

This morning I bought back in at $104.18. My broker ecstatically ran to call his entire client list, who follow me like some kind of guru.

5 comments:

Jay D. Homnick said...

And of course an hour later they were $103.86. You never can catch that exact bottom.

Hunter Baker said...

Mr. Homnick, I suggested this strategy to my parents when the Dow was fluctuating wildly between about 7600 and 9800. I thought they should buy, sell, buy, sell whenever the Dow hit about 8000 and 9000.

They did not buy it. Glad to hear it's working for you.

P.S. I don't blame them for not following my advice. My instincts with regard to specific stocks are terrible!

Tom Van Dyke said...

Pick me a horse, Jay!

Tom Van Dyke said...

Jay---

I just installed SiteMeter in my very great and excellent blog (plug, hint, plug) and while playing with it, I noticed a ton of action from high finance/investment-oriented sites.

Since hi-fi is not a facet of my very great excellence, I can only assume the activity was triggered by my previous comment above.

You got some serious EF Hutton mojo going here. Pick me a horse. I'll cut you in.

Jay D. Homnick said...

As it happens, I have a good friend who lives on a horse ranch and is uncanny at picking horses, good for about 5 out of 6, no kidding. Right now she is busy with her birthday party and can't be bothered, but after April 5, perhaps....