Friday, January 15, 2010

Yes, More Portfolio Rebalancing!

My portfolio has been diva positive this week, but not today! And I was just dreaming of being in the Guinness Book of World Records for most amazing portfolio recovery... What? I've always admitted to the gigantic trading ego.

-1.41% on my standard brokerage account and -2.21% on my Roth IRA so far...

I did some more portfolio rebalancing. Yes, again! I added MS to my account and I think I got in at a good price. MS has a lot of cash - about $489 per share. It is trading about 12% above its book value. To get into this position, I sold part of my BAC shares at about a 5-6% profit and combined the capital from my partial NYX sale with the partial BAC sale.

I hope I'm making my portfolio a lot more exciting, although I have doubts about whether I should be as bullish as I am on the financial sector. Getting into the financial crisis, I was really heavy into financial sector stocks. So, my philosophy is that getting out of the crisis, this will be my route to quick and magnificent portfolio recovery.

I'm still thinking my portfolio needs a bit more balance, but if I'm right, then my portfolio should recover much faster than if I add some low beta stuff to weigh it down. I need stocks that move really fast and so far, the high beta has only done my portfolio good.

BX and MS - hopefully my new heroes of the highest calibre!

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