Birchtree's Account Talk

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I have enough firm maintenance excess built up so my protection is in place for awhile. However, as I increase the debt I'll add to my sacrificial lamb chop account as a wise discipline just in case the 60 year kress cycle reigns down destruction. If we are in fact in the early stages of a multi-decade rampant bull market any time is a good time to acquire assets because they are only getting more expensive. The nice thing about margin is that I get access to my unrealized capital gains without having to sell them and declare profits - everything remains intact with the income stream. Plus the tax deductability offsets the dividend income - same as a mortgage deduction only I have immediate liquidity if ever necessary. Not a game for everyone but the profit potential can be colossal for those reaching.
 
A small note from my WSJ. "Thursday's rally sent the S&P 500 to a new record, pushing it 4.8% higher than it was at the end of April. That puts the stock market on course to break the usual pattern: Since the S&P 500 was introduced in 1957, a strategy of buying the index on the last day of September and selling it on the last day of April would have returned 7% annually. In contrast, buying the index at the end of April and selling it at the end of September would have lost 0.5%. When investors ignore this history and bid stocks higher in the summer, it is worth taking note. Over its 56-year history, the S&P 500 has logged new highs in 25 Julys. Those have often been big years for the market, with the index registering a median annual gain of 16.9% versus 1.4% for the other years." Seems to me there is more to come. If I can take down a gain of +31K today in my oceanic account I'll clear +$200K on the week - is that even likely. You bet.
 
A nice week indeed for the oceanic account and not bad for the tugboat account either. Here's what happened: +$28K, +$66K, -$5K, +$81K, +$14K for a sweet gain of +$184K. Not quite the +$200K I wanted but then there is next week which proposes to be raucous and profitable as all get up. For the month so far I'm ahead +$286K - not bad for a small time investor. It'll be interesting to see what the next 13 trading days can do for me. I would be ecstatic if I could pull down +$500K for the month. There is a strong possibility that margin may come my way real soon and that means putting more money to work as I run in front of the Grand Funk Railway - the more you have in the bigger the win. Mindylou has my buy list ready to go - all I need is more money. I'm still waiting on a +300 point open gap up at any moment - that would get some mom and pop attention.
 
"To the casual observer, the stock market appears to be in turmoil once again. And though it calmed down this past week, heightened volatility is just one misplaced word from Ben Bernanke away. What should investors do?" Well do as Birchtree does. "The most important thing is to construct an especially large and diversified portfolio to immunize yourself from the gyrations exhibited by individual stocks." Now isn't that simple - all it takes is money to acquire those assets.
 
"Bulls argue that an improving housing market and resilient consumer spending will lead to improved corporate revenue and hiring in the months and years ahead. Economic improvements will prove the market can stand on its own, without the Fed's support. Ultimately, rising rates and a steeper yield curve should be good for bank stocks. That is partly why, despite market tumult the past two months, financials have outperformed the S&P 500 since Late May by nearly four percentage points."
 
Birchtree said:
"Bulls argue that an improving housing market and resilient consumer spending will lead to improved corporate revenue and hiring in the months and years ahead. Economic improvements will prove the market can stand on its own, without the Fed's support. Ultimately, rising rates and a steeper yield curve should be good for bank stocks. That is partly why, despite market tumult the past two months, financials have outperformed the S&P 500 since Late May by nearly four percentage points."
Click to expand...

I agree. As interest rates rise, banks make more profit. This Sector Is About To See a Huge Jump In Profits ~ The Growth Stock Wire
 
Thanks BT, I kind of like this one a lot. Started buying between $ 8-9 range a while back. Their R&D seems to be 2-3 years ahead of the other major car companies.
 
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