Weekly Roundup - November 12, 2016
|Happy Weekend! Check out what's been going on in my world and some of the best articles from around the blogosphere.|
Just as surprising was seeing the massive reversal in the stock markets. Due to what I presume was the unexpected Trump lead in the election, and eventual win, futures on the DJIA were signaling as much as an 800+ point decline for the index. Well, by the time I got up Wednesday morning that had move to just a 250 point decline and in late afternoon trading the DJIA was actually UP 300 points on the day. That's an 1,110 pt swing from the low point the futures were forecasting to the high of the day. Absolutely amazing.
Regarding the markets though not much has changed in my eyes. I still want to focus on value first which there isn't much that I see is a screaming buy. For the most part the companies that I'd love to add to are still on the high side of fair value so they're defensible to buy, but are still expensive.
That doesn't mean I haven't been active this week as I opened 4 new options positions, 3 put options and 1 buy/write call. All of these moves were done in my newly rolled over 401k.
Honestly seeing that much cash, approximately $140k, sitting in my account is hard. Being patient and focusing on value will win out in the long run, but man this is one of the hardest things to do. With all of the options contracts that I opened I "invested" nearly $40k of capital which is insane just how quickly that can happen. I had to walk away from the computer because I could have easily "invested" $60-70k over the last couple days.
There's no awards for investing capital quickly and I need to come up with a more set in stone plan for how to invest this capital to balance my desire to be more aggressive with options, build a long term dividend growth oriented portfolio and keeping some cash on the sidelines for any downside market volatility. So there's plenty to ponder this weekend.
I mentioned last week how I was actually looking forward to the Black Friday/Cyber Monday sales this year. I normally am not a shopper, but this year that will likely change and with quite a large purchase. I've always wanted a home/garage gym and with me being a SAHD and constantly having my daughter in tow coupled with being home that desire has increased.
I was eyeballing some weight lifting equipment from Rogue Fitness; however, after researching other places I found a similar set up that looks more appealing. The overall cost is much less than the set up from Rogue Fitness although I think it's a better deal. As of now the package is running $679 and while I'm not getting as much weight, only half as much as the RF package, I do get a squat rack which will make things easier.
I've tried searching Craigslist and the various other sites/apps but I just can't find much. I can build something that is comparable, but it would be a lot of hassle because the downside of Craigslist and the other resale sites is that things aren't all together. So is it worth my time to save money but dramatically increasing the hassle factor, especially when you factor in that I drive a Honda Civic so transporting anything bulky is a pain. I'm leaning towards getting this lower weight package, but better overall package from Fringe Sport (with free shipping) and then using Craigslist to build up the additional weights as needed.
On to the Roundup
In case you missed them, here's the posts from Passive-Income-Pursuit over the past week.
- Revisiting My Bet On Volatility
- Considering Realty Income? Consider Your Options via Seeking Alpha
- Recent Options Transactions
- Recent Options Transactions: Part Deux
Once again I'd like to say thanks to each and every one of you that read, commented, and shared posts from here this past week. I think this dividend growth investing and financial independence community is amazing and the openness from everyone is awesome. Thanks again!
Now on to the links!
An Investment Plan Helps You Stay The Course by Dividend Growth Investor
Revisiting Great Canadian Gaming: Lessons on Capital Allocation by Building A Stable Dividend Portfolio
Investing Like Phil Fisher In Real Life by The Conservative Income Investor
The Privilege of Retiring When We Want, How We Want by Our Next Life
Why Gold? by Roadmap2Retire
Roller Coaster Post Election by Dividend Diplomats
Recent Stock Purchase November 2016 by DivHut
Trumped by Income Surfer
Dividend Income - October 2016 Update by Tawcan
Amazon FBA Income Report After The First Two Months by Cash Flow Diaries
Options Update: October 2016 (Part 2) by DivGro
My Evolution As An Investor by Financially Integrated
Dividend Aristocrats in Focus Part 39: Wal-Mart by Sure Dividend
The Next Few Days Should Be Like Brexit On Crack by Dividend Ten
If you're looking for investment ideas, A Frugal Family's Journey maintains a list of stock analyses and recent buys from fellow bloggers.
I hope you all have a great weekend!
Image courtesy of Gubgib via FreeDigitalPhotos