Quote:
Originally Posted by 68Cuda
You had to bring up Bank of America again didn't you... ugly, painful... at one point I just cut it loose. Overall it was about 5% of my total, so with everything else doing good I was fine.
My other, maybe not so painful, was Annaly Capital. I think I broke even, but that means for two years that money made zero net. Great dividends, but the stock was essentially consuming itself to pay for those dividends. The stock price was dropping to match the dividend payout more or less.
Both of those stocks had me watching the market too much. Now I just check in on it every month or so.
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The hardest part of BUYING --- is Selling. Knowing when to sell -- when the LOSS is eating you up mentally. Nobody likes to take a hit.... we all keep thinking / hoping / wishing / willing "it" to turn around and make us whole. Once in awhile that actually happens. Most of the time -- the "market" has spoken and that market is bigger than "us". There's DIPS --- and then there's "broken". Dips are fun and make you look really smart... Broken -- that beats you down and picks your pocket. Hard to know when it's a dip and when it's broken.
Owning INTEREST sensitive stocks in what we KNOW will be an interest rising market is DEATH. Old saying -- when interest rates rise... the stock market dies... Now. That's a really broad brush and frankly is only true for parts of the market. The key is to understand WHAT stocks might be hurt with a balance sheet of low interest rate bonds/stocks/mortgages.... Annaly (NLY) will be one of those hurt by being caught in the crossfire. I sold my NLY a LONG time ago.
The "mortgage REITS" may be some of the others caught with a book of low yields in a rising market. Really - it depends on how quickly and how far the rates rise.
BTW -- you know I've said it a million times -- the stock you sell at a loss - will climb to the moon half an hour after you push the button. I hate that damn little man on Wall Street. It's okay! Let it go.
Let me know when you - or anyone else - get's it 100% right. I'll give you all my money to invest.