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05-11-2007, 11:20 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,781
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Downside Protection
Get ready for the next big rally! Chances are things will be looking up because today I spent a few quid on Powershares QID. Its a doubledownside play on the Nasdaq. I guess that means I'm calling the top at 2555.
My knuckles are a lovely shade of white. So far I'm up $15 8)
__________________
In a panamax down by the river.
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05-11-2007, 12:00 PM
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#2
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Moderator Emeritus
Join Date: Jul 2005
Posts: 2,811
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Re: Downside Protection
Oh, Great! Another market timer. : Just kidding. Good luck...but just in case, you better get that crystal ball all polished up.
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Work? I don't have time to work....I'm retired.
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05-11-2007, 12:09 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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Re: Downside Protection
My downside play is to finish this year by fritzing the last 14 Drip plans in the last file cabinet - deposit the stocks in my VG broker account and sweep the dividends into my Prime MM checking.
That way the Norwegian widow doesn't have to stand out in the rain and snow by the mailbox waiting for the divdends.
She is getting older - and might as well make use on modern technology.
I hear the price of stamps is going up again Monday.
heh heh heh -
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05-11-2007, 12:20 PM
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#4
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 140
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Re: Downside Protection
My downside protection --- I just got a CD from the Boeing credit union for an annual yield of 7.14% FDIC. No worries and it beats inflation.
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05-11-2007, 12:21 PM
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#5
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Full time employment: Posting here.
Join Date: Jun 2006
Posts: 718
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Re: Downside Protection
What downside? The market cant possibly go down....
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05-11-2007, 12:38 PM
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#6
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Recycles dryer sheets
Join Date: Jun 2006
Posts: 229
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Re: Downside Protection
Quote:
Originally Posted by janeeyre
I just got a CD from the Boeing credit union for an annual yield of 7.14% FDIC.
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Amazing!
BECU? That website shows no such CD. Top rate there is 5+%
Don't credit unions use NCUA for insurance instead of FDIC?
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Old Guys Rule
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05-11-2007, 12:58 PM
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#7
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 140
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Re: Downside Protection
Bum -- try this site
You were probably on the BECU web site. This is the helicopter division's credit union.
http://www.bhcu.org/srates.html
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05-11-2007, 01:38 PM
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#8
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Recycles dryer sheets
Join Date: Jun 2006
Posts: 229
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Re: Downside Protection
Quote:
Originally Posted by janeeyre
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I'm not BUM, but I was looking at BECU.
Now I do see the 7.14%....in an IRA...
how does that work....you open an IRA with them and buy the CD in there?
and they are NCUA and ESI
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Old Guys Rule
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05-11-2007, 02:01 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,781
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Re: Downside Protection
I also have been selling off a few putz stocks and fattening up my VG Prime MM account. This QID has the offsetting effect that I've been looking for. No options. When the market it way up its way down and vice versa. Now to figure the right balance...
__________________
In a panamax down by the river.
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05-11-2007, 02:29 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Posts: 1,305
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Re: Downside Protection
Quote:
Originally Posted by janeeyre
My downside protection --- I just got a CD from the Boeing credit union for an annual yield of 7.14% FDIC. No worries and it beats inflation.
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How does one join the Boeing CU if not a Boeing employee? wow 7+%? what is the length of the CD?
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Life is GREAT!
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05-11-2007, 03:37 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Downside Protection
I think I'd rather buy index puts for downside protection, but different strokes.
I've been slowly selling off bits and pieces as stuff has gone up. Recycling some of the cash into new positions, but mostly letting cash balances climb in preparation for some bottom-fishing in the next correction (whenever it comes along). Threw some DSX call options out teh window this morning after a spectacular run.
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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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05-11-2007, 05:13 PM
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#12
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 140
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Re: Downside Protection
You can transfer a present IRA to the BHCU or open up a new IRA. It is a money market IRA and the duration of the 7.14 is at least 6 months. It should stay at the current rate for another 6-12 months. It is open to the public.
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05-11-2007, 06:01 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,490
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Re: Downside Protection
Quote:
I've been slowly selling off bits and pieces as stuff has gone up ... mostly letting cash balances climb
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ditto
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05-11-2007, 06:29 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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Re: Downside Protection
I'm looking forward to rebalancing in a few months. My foreign equities are getting ahead of themselves again.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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05-11-2007, 07:39 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
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Re: Downside Protection
If you like to pick and predict tops you should read the guys on this site:
www.traders-talk.com
they will help you lose some money.
So far my reading of the charts don't hint at a top.
There is a great deal of cash sloshing around the world right now. Central banks are beginning to tighten up with no affect so far.
Maybe it will be next year that all the piegons will come home to roost.
If you are looking for some indication I would suggest IBD
www.investors.com
I think the only thing that will take this market down is a terrorist act in the USA. Depending upon the act it may just be a buying opportunity.
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Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
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05-12-2007, 05:45 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,781
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Re: Downside Protection
Quote:
Originally Posted by dex
If you like to pick and predict tops you should read the guys on this site:
www.traders-talk.com
they will help you lose some money.
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Dex, That is very funny. You are right about "all that money sloshing around". Two talking heads on CNBC said, "We now call that liquidity. We used to call it inflation." Whatever it is, liquidity, oil profits, inflation, I feel like Humpty Dumpty. As said above, my portfolio is way ahead of itself. I like where it is. I'd like to keep it there, for a while but I haven't come to terms with selling all and "buying dollars" in Vanguards Money Market Fund. All in all, nice problems to have :P
__________________
In a panamax down by the river.
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