My KBE sale on 9/29/2008
Correction: 2008-10-03
Real quick, I have a correction to my posting on Monday, 9/29. I sold KBE for a nominal loss on Monday, not the small gain I had originally stated. I forgot that I sold those cheaper shares to remove some of my exposure to banking back in August, so the shares that I sold this Monday actually were at a loss. Regardless, I am glad to have taken additional money off the table this week because for the moment I believe I can get a better risk-adjusted return in others sectors. Sure, as of yesterday's close KBE was about 10% higher than when I sold on Monday, but I don't miss that little gain one bit because in my opinion the risk of keeping those shares to get that small gain were too great this week. It is quite possible that the banks made their low several months ago, but I do not expect the banks to outperform most of the other sectors I am promoting at the moment. Having said that, I do still have a nice position in KBE that amounts to around 8.8% of my tradable portfolio (i.e. exludes retirement accounts that I cannot freely choose what I want to buy, i.e. my "choose from these 15 funds-401(k) account").
Gregory
Real quick, I have a correction to my posting on Monday, 9/29. I sold KBE for a nominal loss on Monday, not the small gain I had originally stated. I forgot that I sold those cheaper shares to remove some of my exposure to banking back in August, so the shares that I sold this Monday actually were at a loss. Regardless, I am glad to have taken additional money off the table this week because for the moment I believe I can get a better risk-adjusted return in others sectors. Sure, as of yesterday's close KBE was about 10% higher than when I sold on Monday, but I don't miss that little gain one bit because in my opinion the risk of keeping those shares to get that small gain were too great this week. It is quite possible that the banks made their low several months ago, but I do not expect the banks to outperform most of the other sectors I am promoting at the moment. Having said that, I do still have a nice position in KBE that amounts to around 8.8% of my tradable portfolio (i.e. exludes retirement accounts that I cannot freely choose what I want to buy, i.e. my "choose from these 15 funds-401(k) account").
Gregory
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