The Street featured an article titled “Simple Ideas for Downside Portfolio Protection.” As I read it, I got the distinct feeling that there was not much conviction behind the suggestions. I have seen similar articles with the same topic before, and they all appear to say “yes, you can do these things, but…” And the big “but” is this: “While …
Sunday Musings: Still Not Getting It
Recently, the WSJ (subscription required) featured a piece with the title “Unstable Condition.” Let’s look at a few highlights: Q: Are there ways an investor can protect against a rise in the market’s volatility—or even profit from it? A: Investors have endured a bumpy few years. The market tumbled in 2008, then rose sharply in the subsequent two years, leaving …
Reader Q&A: How Much Of An ETF Profit Is Enough Without Being Greedy?
I had some email exchanges with reader Bob, who responded with the ultimate question. Here’s what he had to say: I am using a 7% trailing stop for all ETF’s. So far, none have hit the execution point. The one issue I am struggling with is when to take a profit. For example, I have MDY up 25% and IVV …
Reader Q & A: How Do I Re-enter After Getting Stopped Out Of An ETF/Mutual Fund?
During the recent correction, reader Kathy was stopped out of her international position based on her 7% trailing sell stop. With the markets having rebounded, she obviously experienced a whipsaw signal. This was her comment: I was sell-stopped out of my 403B International Fund last week. My high was 21.27 so 7% would be 19.78. Since I can only commit …