15% return in a year that the SP500 is up 5% - that is great.
I has to be understood that the last 3 or 4 years have not been normal and the market has went straight up with nary a significant correction. Volatility, the stuff that causes investors sleepless nights, has been at record lows. Any hack can generate market beating returns by using leverage (margin debt or levered ETF's) under these conditions. Buying the dip and selling the rip has worked every, every time. Will this continue - no way. At some point the party ends, and as Warren says - 'you never know who has been swimming naked until the tide goes out'.
I love to buy into dips in special situations, examples POT last year when the Russian cartel announced they would break ranks on pricing, APC after the Tronox ruling or AAPL when it broke down under 400. Someone else has mentioned GILD when the biotech scare went off three months ago - yeah I made some money off that one too.
I also buy stock and write at the money calls, aiming for 2% or 3% option premium gains per month. Or alternatively writing out of the money naked puts on stocks I would like to own at lower price points.
I am sure most of us have had the experience of being at a hot blackjack or craps table, having a significant winning streak and then giving every chip back to the casino.
So the key point is managing your money and your self. Pulling back , or altogether out, at some favorable point. When does the music end - I really have no idea. My thoughts are that so many are looking for a correction that the most likely scenario is that this bull move has yet some time left.
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