Sunday, 20 May 2012

Recent Market Plays: May 2012

The last week was horrible for the stock market and people point to the fear of Greece exiting the Eurozone. This resulted in stocks getting slaughtered... which was great news! I jumped on an opportunity to get in on Rogers earlier in the month and last week I made a couple more moves.

I increased my position in Weston and added another member of the Big Five to my portfolio; The Bank of Montreal. As I mentioned before, I ran out of cash with the Rogers move, so to fund the plays I had to sell an ETF (which I was planning to eventually do). The ETF didn't pay any dividends so as a result my yield should be higher for the next dividend progress report. The downside was that I had to sell it at a loss, but I considered the opportunity cost of sitting on an ETF that generated nothing when I could have BMO giving me 5% annually so I took the hit. I can also use the loss to offset future gains so it's not all bad.

Now I'm really strapped in terms of cash. I'll have to find more money somehow because I feel that some bargains may be headed our way if the economic outlook becomes bleak again. Worse comes to worse I can keep selling my ETFs at a loss to get better positions.

-the Paperboy

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