Weekly Summary

In the past week, I've experienced some degree of recovery, but my portfolio is still far lower than it has been earlier this year:


Today's headlines read that it's been the worst month in 21 years, and I'm feeling it - but I also have some optimism that the markets will bounce back in the months ahead, so I expect that it may be time to move some of the cash I've been sheltering back into equities to take advantage of the recovery.

I'll consider that over the weekend, but unless I change my mind, expect to see some movement of funds, and a spending spree in the next couple of weeks.

Bottom Feeding

It's not news that the markets are in terrible shape - that has been evident for far too long. Neither is it news that they will eventually find a bottom - various pundits have been proclaiming it for some time, even as the market has continued to plummet. Eventually, that's bound to happen. What is new, if not news, is that I'm beginning to think that now may be the right time to get back into the game - move some of the funds I've been sheltering in treasury securities and CDs to equities. Here's why:

The market indices have all been fluctuating wildly - up one day, down the next - but have been in a consistently upward trend for the last three days in a row, with less brutal swings in value, and the major economic indicators, while far from rosy, don't justify the level to which the markets have already fallen.

Next week's elections, however they turn out, will provide some sense of a certain direction for the economic future of the nation. It's really doesn't matter which candidate comes out on top: what matters is that the decision will be made, one way or the other.

And so, unless a major bomb is dropped in the next few days, I expect we're on the road to recovery. Granted, many voices have said as much for quite some time, and I've not been entirely convinced.

I'm still not entirely convinced, but I'm beginning to have my doubts about my doubts, and that's as close to optimism as one can get in this market.

Weekly Summary

It's been another brutal week on the markets, and my portfolio is in tatters:


At this point, I'm not laying any plans, just riding the storm out and, like many, waiting for the markets to hit bottom and start staggering upward again.

Headed South ...

When Freddie Mac and Fannie Mae were taken into custody, I held out some hope that the government's goal was to shepherd them back to solvency ... but it turns out they're doing a better job of destroying the companies than the corporate executives that ran them into the ground to begin with.

The Federal Housing Finance Agency, which placed the two companies in conservatorship on Sept. 7, directed them last month to start increasing their purchases of loans and mortgage-backed securities as the Treasury seeks to absorb underperforming and illiquid assets from financial companies.

Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds ... Each company needs to buy $20 billion a month in mostly subprime, Alt-A and non-performing prime mortgage securities, according to the people, who asked not to be identified because the plans are confidential.

When patients, already sick, are being fed poison pills by the doctor they turn to for healing, there's virtually no hope of recovery. But then, considering what Bernake and Paulson are doing to the nation's economy at large, is there any safe harbor?

Weekly Summary

There's been some recovery in the markets this week, but not much, and my portfolio is still well in the red:


Just not much to say these days ... still in wait-and-see mode.

Another Reverse Split?

Rite-Aid has been put on notice: its stock has been trading below the $1 borderline on the NYSE for the past month now, and must drag itself back over the line in six months or face delisting.

Faced with the same problem, Revlon made the same move just over a month ago - and their shares have recovered slightly since - but I commented at the time that it was the first time I'd seen that happen.

Given that Rite-Aid is still struggling to recover from its acquisitions, and the entire market is struggling to regain ground, I think it's unlikely they'll pull out of their nosedive in the near future, and a reverse-split will eventually occur.

I may be wrong about that ... or they may be able to effect a similar recovery after the reverse-split takes effect ... but I'm doubtful on both counts.

Weekly Summary

This past week was murderous to my portfolio - though given the performance of the entire market, I don't think I'm alone in this predicament:


Given the way things are going in the overall market, I'm going to have to deviate from my general strategy of dumping a position when it falls below 50% of its original value. Otherwise, I'd be dumping about half of my portfolio: DEXI, FEEC, RAD, IVAN, and FRE.

The wise guys are saying that this is the time to buy, as you'll make a killing when the market recovers. While that sounds like good advice, they've been saying the same thing for the past month, and anyone who's done so is sorely regretting it.

I'm going to wait for a full week of positive movement before I get any deeper into the markets, and I'll hold onto what I've got in hopes of recovering some of what I have already lost.

Weekly Summary

It's the end of a turbulent week in the markets, and my portfolio has taken a $500 dive:


Nothing has done particularly badly: Krispy Kreme and Freddie Mac have dropped about $100 apiece, and the rest of the loss is forty dollars here, sixty there, twenty there - every single stock is down from where it was last week.

In brighter news, much of the turbulence has been over the federal bailout bill, which has finally been passed and signed. Like many investors, I have mixed feelings about it - whether it was the "right" or "wrong" thing to do from an ethical perspective, and whether it will make any difference at all to the markets, what with other economic indicators sagging ... but what's done is done, and we'll just have to wait and see.

Quarterly Report

It's the end of third quarter, and here's how things have gone so far this year ...


I could feel pretty bad about that, but here's a comparison between my portfolio and the S&P 500's performance this year ....




All things considered, I think I've done quite all right.