Monday, August 17, 2009

Market Declines Take Even The Conservative Positions

I remember being cautious during the internet bubble and having a portfolio that consisted of stocks like Oracle. They were real companies that were selling at "reasonable" P/Es, not the story stocks that were the frothy leaders of the market. When the big decline came they went down also. They didn't melt off the face of the earth, but it felt bad anyway as my net worth shrank and it took quite awhile to regain ground.

Prior to the financial meltdown of the past year, my portfolio, for the most part, was also conservatively positioned. At least I thought so. But when the big decline kicked in my stocks went down also. Not as far as the bad names, but down.

After a 40% ramp up I am apt to see the same thing. My few holdings have felt good as they increased in value, but they are aching today and I shouldn't be suprised. All stocks dive in a dive.

I should exit the entire portfolio, but i won't as I have ample cash and trouble putting it to work as is. Therefore, I'm going to try to prepare myself for feeling miserable as my conservative, dividend paying stocks get killed along with the Citibanks and the AIGs of the world.

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