Sunday, October 11, 2009

Am I Better Off Today Than A Year Ago?

Getting into the global financial crisis, my portfolio was in really bad shape. I had committed financial suicide with:

a. shopaholic tendencies
b. a substantial forex trading loss
c. terrible portfolio diversification
d. all of the above

Now, a little over a year after Lehman collapsed, I am asking myself whether I am better off today? Did I learn enough? Did I do enough?

Throughout the crisis, I invested another high four figure sum into my equities portfolio. After all this, I am better off percentage wise (+6.93% to be exact), but not in dollar terms. However, if I had just sat back and let the market take its course, my entire portfolio would be -70% today with no recovery in sight. That's a scary thought.

I've had some winners and some losers. But all in all, when I had averaged into a position, I ended up better off the majority of the time with the exception of C. I've got to turn this one around.

When I think about it, I still might have got it all wrong. I mean, I spent more on my Big Holiday than I did investing in my portfolio.

The bigger question, I suppose, is will my JBQ strategy work? And that takes time to ascertain.

I wish Rusty would say something - anything...

In the meantime, I keep telling myself that the darkest hour is right before dawn.

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