See the end of the post for the current make up of my portfolio and the last twelve weeks of trades (its been a while since I did a full update).
The last few weeks have been a rollercoaster. It was less than a week ago, on Tuesday night, that I was deliberating whether I should be making dramatic cuts to my exposure the next morning. By the market close Friday my portfolio was back to the post October peak.
The gyrations have not been due to particular volatility in the stocks I own. Over the last month I have basically been tracking the market, doing a little bit better but not much. Its just that the market is going up and down like a yo-yo.
While I am happy to have gained back the losses I took over the past couple of weeks, this whole dynamic makes me uneasy. Too many extremes for my liking. In my investment account, which is where most of my risk is and the one I track here (its also by far the most fun one to write about) I’ve taken down some exposure over the last few days by reducing some positions that seem to be the most prone to gyrations in this market. Stocks like Ocwen, Nationstar, Aercap and the like (note that I wrote this over the weekend and had reduced my servicing positions before the Ocwen settlement today. Today I sold Ocwen entirely at the open, being a little surprised that it was trading at $19+, bought back some Nationstar at a little over $28 later in the day and then bought back a bit of a position in Ocwen at the end of the day on hope of a short term bounce). Read more