Tuesday, July 17, 2012


Over the past 3 weeks, not much activity has been needed, as I am still fully invested. Action that did occur was Verizon called away - it has been on a tear lately so rolling over was not an "option".
Although rising stocks provide a cushion for stocks held, they are a negative for starting a new position - however, there are plenty of others out there. I also did a Buy/Write on Dow, and more recently QRE energy - a nice dividend with a bit of call premium. This Friday may produce some available cash, although mostly I shall be rolling out the calls (9 positions expiring).
Analysts are complaining about a "dead money" sideways market, so it is nice to be earning $$ every day - either through a laddered dividend payment or decay of the call option (theta).
Especially having a safety net that earns money (DITM calls), although I still watch the market like a hawk!
I just recapped not only the past 6 months in my small IRA - the purest DITM with no GNMAs, MRD (req. distr.) or contributions (retired). As I reported earlier, only a couple of actual trades this year ( including falling off the "CLIFF" CLF). Still, results from when I started the DITM in May of 2009 (42 months) this DITM proxy has earned @7.7% a year , or 0.64%/month. This included trial-and-error and a learning curve ( annual dividends, selling puts, etc.).
The Chronicle just reported that U.S. families from 2007 to 2011 lost $11T in wealth, or 40% of their total assets.
Best estimate for the rest of the year is positive - based on valuation, cycles and seasonality; see more on Election years for incumbents at my Examiner.com column:

Extremely crude drawing available on demand!

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