What I Am Buying Today.

[ken-do-nim]

(10-30-2021, 08:32 AM)fenders53 Wrote:

(10-30-2021, 06:27 AM)ken-do-nim Wrote:

(10-29-2021, 01:28 PM)fenders53 Wrote: I just saw DFEN and DRN are both triple leveraged.  If I had short term sector rotation advice I'd leverage up too and retire 10 years ago.  

I know you won't listen but I would limit my leverage to sectors I was very knowledgeable in.  Tech for example.  You'd be less inclined to fold for no reason.  I spent 34 years working for the DOD and I have never leveraged defense.  I doubt you have any business leveraging the sector.  Real estate is bubbly now.  You want to catch the top in a 3x fund before mortgage rates rise?

One additional comment - my original DFEN purchase was back in 2020 when the stock price was ridiculously low and I knew it (as were most of my leveraged buys), and I've doubled that money.  So I don't think the problem is the purchase, I think the problem is knowing when to exit.

We never know where the top is, but we do know when we just enjoyed dream returns.  You can always stay in the sector and return to 1X.  Or you can take your money off the table and leave the house money.  Maybe sprinkle the money to boring stuff like JNJ or a nice soap and deodorant company lol.  Sure, you'll make less money than leverage if the sector runs awhile longer.  That is the greed talking.  When I get a surprisingly high return I often do what I described.  Buy a few shares of my favorite UTE or whatever.  Collect 80 dividend payments if I live long enough. 

I'm out of Defense sooner or later.  I don't feel the need to be in every sector.  DFEN I will liquidate for sure; LHX is a probable but not definite.  I'm still up pretty well on it, but those ORCL shares aren't going to buy themselves I will just wait for a new tax year & long term capital gains for these first.

Speaking of boring, yeah what happened to JNJ?  I was having second thoughts about having sold it early when it ran up to 179, but now it's right back down in the low 160s.  And they just demonstrated that the second booster shot puts covid resistance up over 90%.  P/E is 24 so not overpriced, but still.

I hope everyone has a happy Halloween!