September 9, 2012 Comments

What to do now?

I must plead guilty to very (very!) much enjoying the fact that I am up 20.8% this year to date. After quite few years investing my investments have grown to the point where a 21% gain is a very good chunk of money (just under 200k). (In an email to subscribers yesterday I said it was almost 22%, actually it was almost 21%)

Some of my accounts a reasonable amount of cash in them (the RRSP and RESP) Offsetting that I have a margin account that is using margin and some of the capital in the margin account is from a small line of credit.

All told, the net cash in the investment accounts is about 6%.

Based on my results it is tempting to put even more money and get my net cash to maybe minus 6% (invest everything plus use margin).

On the other hand maybe I should be thinking of taking some profits.

If I take some profits I do so for risk management reasons, not because I think my stocks will go down. But of course they could go down.

So maybe I will force myself to sell down some of what I have and raise some more cash.

I have not decided what to do yet.

As of Sunday evening, markets are expected to open down about 25 points on the Dow. Not surprising given the gains last week. But probably nothing to worry about either.