Friday, May 23, 2014

Waiting fatigue

In a previous post "Dangerous Times" I had mentioned the itch to do something prematurely. This is that time. I am getting the itch to do something and the market is not showing its cards. For the most part most of my portfolio is fully valued. By that I mean that most of the scripts that I hold are at DCF cost price for me and adding to them at this time with no change in fundamentals will simply increase by cost basis beyond the DCF value, taking me into an uncomfortable territory in terms of risk to capital.

I have seen this movie before. The market keeps treading water while everyone is itching to go either way. This is indeed the most dangerous time. The last time this happened was in 2006 when the market was at its highs but not really doing much more. I kept getting the itch to do something and kept adding to my portfolio. Finally when the market turned my cost basis was too high. So I shall try and suppress my itch for now.

Having said that MT is pulling back and that is one place I would like to add.  Maybe below 15 I will. Anyway, till then the market and I will play chicken to see who will blink first.

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