So here is the thing this run up since the end of December have been up and up for 1 month. Many have wanted to add during the correction, but there just wasn’t one.
Reminds me of the bull run from 2009. It teaches you that
- in a bull run, the pull backs are small and infrequent
- the largest part of the bull run may occur over 10 to 20 days
- you underperformed when you couldn’t get leg in fast enough
- if you see companies that are valued and with a margin of safety you should systematically own it
My portfolio currently underperforms due to being yield heavy. I am comfortable in this 48% invested position. If the market continues to go up, picking up value stocks that yields should still do well. 50% of my returns will come from dividends.
Having a few “strikers” will lets you keep up with the broad market index. But a rising tide lifts all the boats as well, even the dividend cows.
How about you guys? Do you think the end is here? More run to come?
For those interested in tracking my most current holdings, you can review my portfolio over here. Learn to use our Free Stock Portfolio Tracking Google Spreadsheet to track stock transactions.
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hyom
Sunday 12th of February 2012
Just dropping by to say you have a wonderful blog on dividend investing. I particularly like your usage of Google spreadsheets for portfolio tracking. Innovative!
Drizzt
Sunday 12th of February 2012
hi hyom! thanks but i just want something useful for others to experiment on. hope it has been useful!
Niubee
Friday 10th of February 2012
Looking at the breadth that the run up is spread throughout all caps. This will be at least a multi-months uptrend.
SG stock is the cheapest in Asia based on PE and PB ratio. So 3 cheers !! Lol...
Drizzt
Sunday 12th of February 2012
hi Niubee thanks for the information. its good to know that.
Drizzt
Friday 10th of February 2012
you always think:what if this dip is like 1994 bear which is short follow by a run up till 1999?
Derek
Friday 10th of February 2012
Hi Drizzt,
I think that the market will be flat for at least for the time being. Although the outlook is gloomy, there still seem to be a lot of liquidity. I'm still waiting at the side lines biding my time and building my war chest. Any purchase now will probably not earn me a multi-bagger.
Cheers!